<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No. __)*
W. R. Grace & Co.
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(Name of Issuer)
common stock
-----------------------------------------------------
(Title of Class of Securities)
383911-10-4
-----------------------------------------------------
(CUSIP Number)
Check the following box if a fee is being paid with this statement [ ].
- ----------
*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 the
disclosures provided in a prior cover page.
The information required in 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 ("Act") 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 1 of 14 Pages
<PAGE>
CUSIP No. 383911-10-4 SCHEDULE 13G Page 2 of 14 Pages
- --------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON(S)
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON(S)
Iridian Asset Management LLC
06-1439577
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
NUMBER OF 5. SOLE VOTING POWER
SHARES 0
BENEFICIALLY --------------------------------------------------------------
OWNED BY 6. SHARED VOTING POWER
EACH 5,697,680
REPORTING --------------------------------------------------------------
PERSON 7. SOLE DISPOSITIVE POWER
WITH 0
--------------------------------------------------------------
8. SHARED DISPOSITIVE POWER
5,697,680
- --------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,697,680
- --------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
- --------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
7.75%
- --------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON*
IA
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
CUSIP No. 383911-10-4 SCHEDULE 13G Page 3 of 14 Pages
- --------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON(S)
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON(S)
LC Capital Management LLC
06-1439578
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
NUMBER OF 5. SOLE VOTING POWER
SHARES 0
BENEFICIALLY --------------------------------------------------------------
OWNED BY 6. SHARED VOTING POWER
EACH 5,697,680
REPORTING --------------------------------------------------------------
PERSON 7. SOLE DISPOSITIVE POWER
WITH 0
--------------------------------------------------------------
8. SHARED DISPOSITIVE POWER
5,697,680
- --------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,697,680
- --------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
- --------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
7.75%
- --------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON*
HC
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
CUSIP No. 383911-10-4 SCHEDULE 13G Page 4 of 14 Pages
- --------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON(S)
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON(S)
CL Investors, Inc.
52-2070252
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
NUMBER OF 5. SOLE VOTING POWER
SHARES 0
BENEFICIALLY --------------------------------------------------------------
OWNED BY 6. SHARED VOTING POWER
EACH 5,697,680
REPORTING --------------------------------------------------------------
PERSON 7. SOLE DISPOSITIVE POWER
WITH 0
--------------------------------------------------------------
8. SHARED DISPOSITIVE POWER
5,697,680
- --------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,697,680
- --------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
- --------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
7.75%
- --------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON*
HC
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
CUSIP No. 383911-10-4 SCHEDULE 13G Page 5 of 14 Pages
- --------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON(S)
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON(S)
David L. Cohen
###-##-####
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
USA
- --------------------------------------------------------------------------------
NUMBER OF 5. SOLE VOTING POWER
SHARES 3,000
BENEFICIALLY --------------------------------------------------------------
OWNED BY 6. SHARED VOTING POWER
EACH 6,127,290
REPORTING --------------------------------------------------------------
PERSON 7. SOLE DISPOSITIVE POWER
WITH 3,000
--------------------------------------------------------------
8. SHARED DISPOSITIVE POWER
6,127,290
- --------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,130,290
- --------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
- --------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
8.34%
- --------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
CUSIP No. 383911-10-4 13G Page 6 of 14 Pages
- --------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON(S)
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON(S)
Harold J. Levy
###-##-####
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
USA
- --------------------------------------------------------------------------------
NUMBER OF 5. SOLE VOTING POWER
SHARES 0
BENEFICIALLY --------------------------------------------------------------
OWNED BY 6. SHARED VOTING POWER
EACH 6,127,290
REPORTING --------------------------------------------------------------
PERSON 7. SOLE DISPOSITIVE POWER
WITH 0
--------------------------------------------------------------
8. SHARED DISPOSITIVE POWER
6,127,290
- --------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,127,290
- --------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
- --------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
8.33%
- --------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13G Page 7 of 14 Pages
Item 1. (a) Name of Issuer:
W. R. Grace & Co.
--------------------------------------------------------------
(b) Address of Issuer's Principal Executive Offices:
1750 Clint Moore Road
Boca Raton, FL 33487
--------------------------------------------------------------
Item 2.
This statement is being filed on behalf of Iridian Asset Management LLC, LC
Capital Management, LLC, CL Investors, Inc., David L. Cohen and Harold J. Levy.
(a) Name of Person Filing: Iridian Asset Management LLC
(b) Address of Principal Business Office: 276 Post Road West
Westport, CT 06880-4704
(c) Citizenship: Delaware
(d) Title of Class of Securities: Common Stock
(e) CUSIP Number: 383911-10-4
(a) Name of Person Filing: LC Capital Management, LLC
(b) Address of Principal Business Office: c/o Iridian Asset Management LLC
276 Post Road West
Westport, CT 06880-4704
(c) Citizenship: Delaware
(d) Title of Class of Securities: Common Stock
(e) CUSIP Number: 383911-10-4
(a) Name of Person Filing: CL Investors, Inc.
(b) Address of Principal Business Office: c/o Iridian Asset Management LLC
276 Post Road West
Westport, CT 06680-4704
(c) Citizenship: Delaware
(d) Title of Class of Securities: Common Stock
(e) CUSIP Number: 383911-10-4
(a) Name of Person Filing: David L. Cohen
(b) Address of Principal Business Office: c/o Iridian Asset Management LLC
276 Post Road West
Westport, CT 06880-4704
(c) Citizenship: USA
(d) Title of Class of Securities: Common Stock
(e) CUSIP Number: 383911-10-4
(a) Name of Person Filing: Harold J. Levy
(b) Address of Principal Business Office: c/o Iridian Asset Management LLC
276 Post Road West
Westport, CT 06880-4704
(c) Citizenship: USA
(d) Title of Class of Securities: Common Stock
(e) CUSIP Number: 383911-10-4
<PAGE>
SCHEDULE 13G Page 8 of 14 Pages
Item 3. If this statement is filed pursuant to Rules 13d-1(b), or
13d-2(b), check whether the person filing is a:
(a) [ ] Broker or Dealer registered under Section 15 of the Act,
(b) [ ] Bank as defined in Section 3(a)(6) of the Act,
(c) [ ] Insurance Company as defined in Section 3(a)(19) of the Act,
(d) [ ] Investment Company registered under Section 8 of the Investment Company
Act,
(e) [X] Investment Adviser registered under Section 203 of the Investment
Advisers Act of 1940,
(f) [ ] Employee Benefit Plan, Pension Fund which is subject to the provisions
of the Employee Retirement Income Security Act of 1974 or Endowment Fund;
see Section 240.13d-1(b)(ii)(F); see Item 7,
(g) [ ] Parent Holding Company, in accordance with Section
240.13d-1(b)(1)(ii)(G); see Item 7,
(h) [ ] Group, in accordance with Section 240.13d-1(b)(1)(ii)(H).
<PAGE>
SCHEDULE 13-G Page 9 of 14 Pages
Item 4. Ownership.
The following information is provided as of December 31, 1998.The percent
of class is based upon 73,504,860 shares of common stock issued and outstanding
of the issuer, as reported on its Form 10-Q for the quarter ended September 30,
1998.
For Iridian Asset Management LLC:
(a) Amount Beneficially Owned: 5,697,680
(b) Percent of Class: 7.75%
(c) Number of shares as to which such person has:
(i) sole power to vote or to direct the vote: 0
(ii) shared power to vote or to direct the vote: 5,697,680
(iii) sole power to dispose or to direct the disposition of: 0
(iv) shared power to dispose or to direct the disposition of:5,697,680
For LC Capital Management, LLC:
The Amount Beneficially Owned being reported by LC Capital Management, LLC
includes all 5,697,680 shares owned by Iridian Asset Management LLC which LC
Capital Management, LLC, as a member owning 69.6% of the limited liability
company interest of Iridian Asset Management LLC, may be deemed, indirectly, to
have ownership, and the power to vote and to dispose of such shares. See Item 8.
(a) Amount Beneficially Owned: 5,697,680
(b) Percent of Class: 7.75%
(c) Number of shares as to which such person has:
(i) sole power to vote or to direct the vote: 0
(ii) shared power to vote or to direct the vote: 5,697,680
(iii) sole power to dispose or to direct the disposition of: 0
(iv) shared power to dispose or to direct the disposition of:5,697,680
For CL Investors, Inc.:
The Amount Beneficially Owned being reported by CL Investors, Inc. includes
all 5,697,680 shares owned by Iridian Asset Management LLC which CL Investors,
Inc., as a member owning 96% of the limited liability company interest of LC
Capital Management, LLC, may be deemed, indirectly, to have ownership, and the
power to vote and to dispose of such shares. See Item 8.
(a) Amount Beneficially Owned: 5,697,680
(b) Percent of Class: 7.75%
(c) Number of shares as to which such person has:
(i) sole power to vote or to direct the vote: 0
(ii) shared power to vote or to direct the vote: 5,697,680
(iii) sole power to dispose or to direct the disposition of: 0
(iv) shared power to dispose or to direct the disposition of:5,697,680
<PAGE>
SCHEDULE 13-G Page 10 of 14 Pages
For David L. Cohen:
The Amount Beneficially Owned being reported by Mr. Cohen includes 429,600
shares owned by First Eagle Fund of America, Inc. which Mr. Cohen, based upon
his employment agreement with Arnhold & S. Bleichroeder Advisers, Inc., may be
deemed to have ownership, and the power to vote and to dispose, of such shares.
See Item 8. Mr. Cohen individually disclaims the beneficial ownership of such
shares.
(a) Amount Beneficially Owned: 6,130,290
(b) Percent of Class: 8.34%
(c) Number of shares as to which such person has:
(i) sole power to vote or to direct the vote: 3,000
(ii) shared power to vote or to direct the vote: 6,127,290
(iii) sole power to dispose or to direct the disposition of: 3,000
(iv) shared power to dispose or to direct the disposition of:6,127,290
For Harold J. Levy:
The Amount Beneficially Owned being reported by Mr. Levy includes 429,600
shares owned by First Eagle Fund of America, Inc. which Mr. Levy, based upon his
employment agreement with Arnhold & S. Bleichroeder Advisers, Inc., may be
deemed to have ownership, and the power to vote and to dispose, of such shares.
See Item 8. Mr. Levy individually disclaims the beneficial ownership of such
shares.
(a) Amount Beneficially Owned: 6,127,290
(b) Percent of Class: 8.33%
(c) Number of shares as to which such person has:
(i) sole power to vote or to direct the vote: 0
(ii) shared power to vote or to direct the vote: 6,127,290
(iii) sole power to dispose or to direct the disposition of: 0
(iv) shared power to dispose or to direct the disposition of:6,127,290
Item 5. Ownership of Five Percent or Less of a Class.
If this statement is being filed to report the fact that as of the date hereof
the reporting person has ceased to be the beneficial owner of more than five
percent of the class of securities, check the following: ____
Item 6. Ownership of More Than Five Percent on Behalf of Another Person.
Not Applicable.
Item 7. Identification and Classification of the Subsidiary which Acquired
the Security Being Reported on By the Parent Holding Company.
Not Applicable.
<PAGE>
SCHEDULE 13-G Page 11 of 14 Pages
Item 8. Identification and Classification of Members of the Group.
This filing is being made jointly by Iridian Asset Management LLC, LC
Capital Management, LLC, CL Investors, Inc., David L. Cohen and Harold J. Levy.
Iridian Asset Management LLC is an investment adviser registered under
section 203 of the Investment Advisers Act of 1940.
LC Capital Management, LLC owns 72.5% of the outstanding limited liability
company interest of Iridian Asset Management LLC, and may be deemed to have the
power to vote and to dispose of the shares owned by Iridian Asset Management
LLC.
CL Investors, Inc. owns 96% of the outstanding limited liability company
interest of LC Capital Management, LLC, and may be deemed to have the power to
vote and to dispose of the shares owned by Iridian Asset Management LLC.
David L. Cohen owns 50% of the outstanding common shares of CL Investors,
Inc. He also is an employee of Arnhold & S. Bleichroeder Advisers, Inc. ("A&SB
Advisers"), an investment adviser registered under section 203 of the Investment
Advisers Act of 1940. A&SB Advisers acts as the investment adviser to First
Eagle Fund of America, an open-end non-diversified mutual fund ("First Eagle")
which is a separate series or portfolio of First Eagle Trust, an investment
company registered under the Investment Company Act of 1940. To Mr. Cohen's
knowledge, pursuant to the terms of the investment advisory agreement between
A&SB Advisers and First Eagle, A&SB Advisors has the authority, for and in the
name of First Eagle, to vote and to dispose of shares owned by First Eagle.
Pursuant to an employment agreement with A&SB Advisers, Mr. Cohen is employed,
as is Harold J. Levy, to perform its investment advisory duties and functions
with respect to First Eagle. Based upon the terms of his employment agreement,
Mr. Cohen may be deemed to have ownership, and the power to vote and to dispose,
of the shares owned by First Eagle. Mr. Cohen individually disclaims the
beneficial ownership of such shares.
Harold J. Levy owns 50% of the outstanding common shares of CL Investors,
Inc. He also is an employee of A&SB Advisers. A&SB Advisers acts as the
investment adviser to First Eagle. To Mr. Levy's knowledge, pursuant to the
terms of the investment advisory agreement between A&SB Advisers and First
Eagle, A&SB Advisors has the authority, for and in the name of First Eagle, to
vote and to dispose of shares owned by First Eagle. Pursuant to an employment
agreement with A&SB Advisers, Mr. Levy is employed, as is David L. Cohen, to
perform its investment advisory duties and functions with respect to First
Eagle. Based upon the terms of his employment agreement, Mr. Levy may be deemed
to have ownership, and the power to vote and to dispose, of the shares owned by
First Eagle. Mr. Levy individually disclaims the beneficial ownership of such
shares.
Neither Iridian Asset Management LLC, LC Capital Management, LLC nor CL
Investors, Inc. has the power or authority, direct or indirect, to vote or to
dispose of any shares owned by First Eagle.
<PAGE>
SCHEDULE 13-G Page 12 of 14 Pages
Item 9. Notice of Dissolution of Group.
Not Applicable.
Item 10. Certification.
By signing below the undersigned certifies that, to the best of its or his
knowledge and belief, the securities referred to above were acquired in the
ordinary course of business and were not acquired for the purpose of and do not
have the effect of changing or influencing the control of the issuer of such
securities and were not acquired in connection with or as a participant in any
transaction having such purpose or effect.
<PAGE>
SCHEDULE 13-G Page 13 of 14 Pages
SIGNATURE.
After reasonable inquiry and to the best of its or his knowledge and
belief, we certify that the information set forth in this statement is true,
complete and correct.
Date: February 8, 1999
IRIDIAN ASSET MANAGEMENT LLC
By: /s/ Jeffrey M. Elliott
----------------------------------
Jeffrey M. Elliott, Executive Vice President
LC CAPITAL MANAGEMENT, LLC
By: /s/ Jeffrey M. Elliott
----------------------------------
Jeffrey M. Elliott, Executive Vice President
CL INVESTORS, INC.
By: /s/ Jeffrey M. Elliott
----------------------------------
Jeffrey M. Elliott, President
By: /s/ David L. Cohen
----------------------------------
David L. Cohen, individually
By: /s/ Harold J. Levy
----------------------------------
Harold J. Levy, individually
Page 14 of 14 Pages
EXHIBIT A
JOINT FILING AGREEMENT AMONG IRIDIAN ASSET MANAGEMENT LLC, LC CAPITAL
MANAGEMENT, LLC, CL INVESTORS, INC., DAVID L. COHEN AND HAROLD J. LEVY
AGREEMENT between Iridian Asset Management LLC ("Iridian"), LC Capital
Management, LLC ("LC"), CL Investors, Inc. ("CLI"), David L. Cohen ("Cohen") and
Harold J. Levy ("Levy").
WHEREAS, in accordance with Rule 13d-1(f) under the Securities Exchange Act
of 1934 (the "Act"), only one statement containing the information required by
Schedule 13G and any amendments thereto need be filed whenever two or more
persons are required to file such a statement or any amendments thereto with
respect to the same securities, provided that said persons agree in writing that
such statement or any amendment thereto is filed on behalf of them.
NOW, THEREFORE, in consideration of the premises and mutual agreements
contained herein, the parties hereto agree as follows:
Iridian, LC, CLI, Cohen and Levy, do hereby agree, in accordance with Rule
13d-1(f) under the Act, to file a Schedule 13G relating to their ownership of
the common stock of W. R. Grace & Co., and do hereby further agree that said
Schedule 13G shall be filed on behalf of each of them.
Date: February 8, 1999
IRIDIAN ASSET MANAGEMENT LLC
By: /s/ Jeffrey M. Elliott
----------------------------------
Jeffrey M. Elliott, Executive Vice President
LC CAPITAL MANAGEMENT, LLC
By: /s/ Jeffrey M. Elliott
----------------------------------
Jeffrey M. Elliott, Executive Vice President
CL INVESTORS, INC.
By: /s/ Jeffrey M. Elliott
----------------------------------
Jeffrey M. Elliott, President
By: /s/ David L. Cohen
----------------------------------
David L. Cohen, individually
By: /s/ Harold J. Levy
----------------------------------
Harold J. Levy, individually
