SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 6)(1)
Puroflow Incorporated
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(Name of issuer)
COMMON STOCK, $.01 PAR VALUE
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(Title of class of securities)
746 375 104
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(CUSIP number)
STEVEN WOLOSKY, ESQ.
OLSHAN GRUNDMAN FROME ROSENZWEIG & WOLOSKY LLP
505 Park Avenue
New York, New York 10022
(212) 753-7200
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(Name, address and telephone number of person
authorized to receive notices and communications)
June 3, 1999
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(Date of event which requires filing of this statement)
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition which is the subject of this Schedule 13D, and is filing
this schedule because of Rule 13d-1(b)(3) or (4), check the following box o.
Note. six copies of this statement, including all exhibits, should be filed
with the Commission. See Rule 13d-1(a) for other parties to whom copies are to
be sent.
(Continued on following pages)
(Page 1 of 13 Pages)
Exhibit Index on Page 10
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1 The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not
be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
<PAGE>
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CUSIP No. 746 375 104 13D Page 2 of 13 Pages
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================================================================================
1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
STEEL PARTNERS II, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) / /
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
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6 CITIZENSHIP OR PLACE OR ORGANIZATION
DELAWARE
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,336,100
OWNED BY ------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH -0-
------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,336,100
------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,336,100
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
16.7%
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14 TYPE OF REPORTING PERSON*
PN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP No. 746 375 104 13D Page 3 of 13 Pages
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================================================================================
1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
WARREN LICHTENSTEIN
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
00
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
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6 CITIZENSHIP OR PLACE OR ORGANIZATION
USA
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,336,100
OWNED BY ------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,336,100
------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,336,100
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
16.7%
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14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP No. 746 375 104 13D Page 4 of 13 Pages
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================================================================================
1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
ROBERT FRANKFURT
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
00
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
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6 CITIZENSHIP OR PLACE OR ORGANIZATION
USA
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY -0-
OWNED BY -------------------------------------------------------------
EACH
REPORTING
PERSON WITH
8 SHARED VOTING POWER
-0-
9 SOLE DISPOSITIVE POWER
-0-
-------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
-0-
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
-0-
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14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP No. 746 375 104 13D Page 5 of 13 Pages
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================================================================================
1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
JAMES BENENSON, JR.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
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6 CITIZENSHIP OR PLACE OR ORGANIZATION
USA
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY -0-
OWNED BY -------------------------------------------------------------
EACH
REPORTING
PERSON WITH
8 SHARED VOTING POWER
-0-
-------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
-0-
- --------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
-0-
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
-0-
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14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP No. 746 375 104 13D Page 6 of 13 Pages
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================================================================================
1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
STEVEN WOLOSKY
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
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6 CITIZENSHIP OR PLACE OR ORGANIZATION
USA
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY -0-
OWNED BY
EACH
REPORTING
PERSON WITH
8 SHARED VOTING POWER
-0-
9 SOLE DISPOSITIVE POWER
-0-
10 SHARED DISPOSITIVE POWER
-0-
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
-0-
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
-0-
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14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP No. 746 375 104 13D Page 7 of 13 Pages
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================================================================================
1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
THE FULL VALUE COMMITTEE
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
/ /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
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6 CITIZENSHIP OR PLACE OR ORGANIZATION
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,336,100
OWNED BY ------------------------------------------------------------
EACH
REPORTING
PERSON WITH
8 SHARED VOTING POWER
-0-
- --------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,336,100
- --------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,336,100
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
16.7%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP No. 746 375 104 13D Page 8 of 13 Pages
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The following constitutes Amendment No. 6 ("Amendment No. 6")
to the Schedule 13D filed by the undersigned. This Amendment No.
6 amends the Schedule 13D as specifically set forth.
Item 4 is hereby amended to add the following
Item 4. Purpose of Transaction.
On June 3, 1999 the Reporting Persons sent a letter to the
Board of Directors of the Issuer in response to the press release of the Issuer
dated May 28, 1999, expressing the Reporting Persons' disappointment in the
Issuer's decision to delay its annual meeting and its adoption of a poison pill
without shareholder approval. The letter is filed as Exhibit 4 to this Amendment
No. 6 to Schedule 13D and incorporated herein by reference.
Item 7. MATERIAL TO BE FILED AS EXHIBITS.
1. Joint Filing Agreement between Steel Partners and
Warren G. Lichtenstein (previously filed).
2. Joint Filing Agreement between Steel Partners,
Warren Lichtenstein, Robert Frankfurt, James
Benenson, Jr. and Steven Wolosky (previously
filed).
3. Preliminary Proxy Statement (previously filed).
4. Letter to the Board of Directors of Puroflow,
Incorporated dated June 3, 1999.
<PAGE>
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CUSIP No. 746 375 104 13D Page 9 of 13 Pages
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SIGNATURES
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After reasonable inquiry and to the best of his knowledge and
belief, each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Dated: June 3, 1999 STEEL PARTNERS II, L.P.
By: Steel Partners, L.L.C.
General Partner
By: /s/ Warren G. Lichtenstein
----------------------------
Warren G. Lichtenstein
Chief Executive Officer
/s/ Warren G. Lichtenstein
----------------------------
WARREN G. LICHTENSTEIN
/s/ Robert Frankfurt
----------------------------
ROBERT FRANKFURT
/s/ James Benenson, Jr.
----------------------------
JAMES BENENSON, JR.
/s/ Steven Wolosky
----------------------------
STEVEN WOLOSKY
<PAGE>
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CUSIP No. 746 375 104 13D Page 10 of 13 Pages
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EXHIBIT INDEX
-------------
EXHIBIT PAGE
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1. Joint Filing Agreement between Steel
Partners and Warren G. Lichtenstein
(previously filed)
2. Joint Filing Agreement between Steel
Partners, Warren Lichtenstein, Robert
Frankfurt, James Benenson, Jr. and
Steven Wolosky.
3. Preliminary Proxy Statement
4. Letter to the Board of Directors of 11
Puroflow, Incorporated dated June 3,
1999.
<PAGE>
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CUSIP No. 746 375 104 13D Page 11 of 13 Pages
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STEEL PARTNERS II, L.P.
150 East 52nd Street, 21st Floor
New York, NY 10022
June 3, 1999
BY FACSIMILE AND FEDERAL EXPRESS
- --------------------------------
Board of Directors
Puroflow Incorporated
16559 Saticoy Street
Van Nuys, California 91004
Dear Gentlemen:
Steel Partners II, L.P. ("Steel Partners" or "Steel") currently owns
1,336,100 shares of common stock or 16.7% of the primary shares outstanding of
Puroflow Incorporated ("Puroflow" or the "Company"). We are writing this letter
in response to the press release of the Company dated May 28, 1999.
Although we are encouraged by Puroflow's decision to consult with an
investment banking firm in order to assist the Board in evaluating strategic
alternatives, we were severely disappointed by the Company's adoption of a
poison pill and decision to delay the annual meeting. Although the Company
states in its press release that these moves were made in the best interests of
the Company's shareholders, we find them to be at the least self-serving and at
the most a blatant disregard of the Board's fiduciary duty towards its
shareholders.
We believe the Company's assertions that Steel Partner's is a
"corporate raider" and that we utilize "abusive tactics" in our business to be
completely without merit. Our primary goal in all of our investments is to
increase the value of the shares held by all shareholders. In that regard, we
consistently follow Federal securities regulations, including the filing of
Reports on Schedule 13D and Forms 3 and 4, in order to apprise the Company's in
which we invest, and the investing public in general, of our plans. Our aim is
simple and direct, as you well know. We believe that the best way to deal with
underperforming Company's is to acquire a large enough stake as to give Steel a
platform with which to best express its views and bring forth positive change.
Our recent track record, which has been well-documented, has shown this formula
to have met with great success. For example, Steel's involvement with Aydin
Corporation from October 5, 1998 until April 1999
<PAGE>
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CUSIP No. 746 375 104 13D Page 12 of 13 Pages
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concluded with a sale of the Company at a price of $13.50 per share, which
represented a premium of approximately 39% over the reported closing price of
$9.69 per share the day preceding the announced sale. In addition, Steel's
involvement with Medical Imaging Centers of America ultimately concluded in the
sale of that company for $11.75 per share, as contrasted with the price of $8.25
per share, representing the closing price on the day prior to the initiation of
Steel's proxy solicitation. Steel Partners has never viewed, nor can it
understand how a third party such as the Company could view, its actions as
involving a "creeping tender". Steel Partners buys its shares primarily on the
open market, at current prices, and promptly discloses such purposes in
accordance with Federal securities laws. Any other characterization is false and
misleading to shareholders and investors. It would be a shame to waste the
Company's time and money in a futile effort to prove otherwise, when the Company
should be focusing all of its energies on maximizing the value of its shares.
On the other hand, it would seem that the Board's current
tactics ARE "abusive" to the Company's shareholders. A poison pill without
onerous provisions, if voted on and approved by the shareholders of the Company
and instituted for a valid purpose, can be an efficient procedure to assure
shareholders of a fair price in the event of an attempted takeover or other
hostile transaction. However, a poison pill put in place without the consent of
shareholders, and with a sole view towards entrenching the current management
and making it impossible for the Company to be sold, is nothing but detrimental
to shareholders. In this light, we hereby request that the Company put the issue
of a poison pill up for a vote of shareholders at the annual meeting, whenever
it may be held. Shareholders should be able to decide for themselves such an
important issue.
In that regard, we reiterate our disappointment with the
Company's postponement of the annual meeting. For most shareholders, the annual
meeting is their only opportunity to speak their mind and take a part in the
governance of the Company. A postponement of the annual meeting takes away the
shareholders right to exercise such actions. Since the Company has had a full
year in which to evaluate its alternatives and plans for the future, it makes us
quite wary that the Company would choose to postpone the annual meeting at such
a late date. We would hope that the Company is sincere in its assertion that the
postponement is for the good of shareholders and not a way for the Company to
issue more "cheap stock" to its officers and directors.
Once again, we would like to offer our assistance in helping
the Company to maximize its value on a friendly, negotiated basis. In that
regard, we would ask that you disclose the name of the investment banking firm
with which you have consulted and the terms, if any, of such consultation. In
addition, we invite the Board to meet with us face to face in order to discuss
our alternatives for the Company, and assist you in your stated goal to enhance
shareholder value.
Sincerely,
<PAGE>
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CUSIP No. 746 375 104 13D Page 13 of 13 Pages
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/s/ Warren G. Lichtenstein
Warren G. Lichtenstein
Managing Partner
