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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. ____)
THE MONARCH MACHINE TOOL COMPANY
(Name of Issuer)
Common Shares, without par value 609150107
(Title of class of securities) (CUSIP number)
Gary K. Duberstein, Esq.
Greenway Partners, L.P.
277 Park Avenue, 27th Floor
New York, New York 10017 (212) 350-5100
(Name, address and telephone number of person authorized to receive
notices and communications)
September 4, 1996
(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 [_].
Check the following box if a fee is being paid with the statement [x].
(A fee is not required only if the reporting person: (1) has a previous
statement on file reporting beneficial ownership of more than five percent of
the class of securities described in Item 1; and (2) has filed no amendment
subsequent thereto reporting beneficial ownership of five percent or less of
such class.) (See Rule 13d-7.)
Note: When filing this statement in paper format, six copies of this statement,
including 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 page(s))
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- ----------------------------------- ------------------------------------
CUSIP No. 609150107 13D Page 2 of 22 Pages
- ----------------------------------- ------------------------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON GREENWAY PARTNERS, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. 13-3714238
OF ABOVE PERSON
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [_]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS: WC, OO
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e): [_]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 100,500
SHARES
------- --------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
------- --------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 100,500
REPORTING
------- --------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 100,500
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 2.7%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: PN
- --------------------------------------------------------------------------------
<PAGE>
- ----------------------------------- ------------------------------------
CUSIP No. 609150107 13D Page 3 of 22 Pages
- ----------------------------------- ------------------------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON GREENTREE PARTNERS, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. 13-3752875
OF ABOVE PERSON
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [_]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS: WC, OO
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e): [_]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 42,100
SHARES
------- --------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
------- --------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 42,100
REPORTING
------- --------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 42,100
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 1.1%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: PN
- --------------------------------------------------------------------------------
<PAGE>
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CUSIP No. 609150107 13D Page 4 of 22 Pages
- ----------------------------------- ------------------------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON GREENHOUSE PARTNERS, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. 13-3793447
OF ABOVE PERSON
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [_]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS: WC, AF, OO
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e): [_]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES
------- --------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 100,500
OWNED BY
------- --------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------- --------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 100,500
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 100,500
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 2.7%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: PN
- --------------------------------------------------------------------------------
<PAGE>
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CUSIP No. 609150107 13D Page 5 of 22 Pages
- ----------------------------------- ------------------------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON GREENHUT, L.L.C.
S.S. OR I.R.S. IDENTIFICATION NO. 13-3793450
OF ABOVE PERSON
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [_]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS: WC, AF, OO
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e): [_]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES
------- --------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 42,100
OWNED BY
------- --------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------- --------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 42,100
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 42,100
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 1.1%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: OO
- --------------------------------------------------------------------------------
<PAGE>
- ----------------------------------- ------------------------------------
CUSIP No. 609150107 13D Page 6 of 22 Pages
- ----------------------------------- ------------------------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON GREENBELT CORP.
S.S. OR I.R.S. IDENTIFICATION NO. 13-3791931
OF ABOVE PERSON
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [_]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS: OO
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e): [_]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 150,000
SHARES
------- --------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
------- --------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 150,000
REPORTING
------- --------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 150,000
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 4.0%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: CO
- --------------------------------------------------------------------------------
<PAGE>
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CUSIP No. 609150107 13D Page 7 of 22 Pages
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1 NAME OF REPORTING PERSON GREENSEA OFFSHORE, L.P.
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [_]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS: WC, OO
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e): [_]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Cayman Islands
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 35,000
SHARES
------- --------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
------- --------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 35,000
REPORTING
------- --------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 35,000
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 0.9%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: PN
- --------------------------------------------------------------------------------
<PAGE>
- ----------------------------------- ------------------------------------
CUSIP No. 609150107 13D Page 8 of 22 Pages
- ----------------------------------- ------------------------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON GREENHUT OVERSEAS, L.L.C.
S.S. OR I.R.S. IDENTIFICATION NO. 13-3868906
OF ABOVE PERSON
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [_]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS: WC, AF, OO
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e): [_]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES
------- --------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 35,000
OWNED BY
------- --------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------- --------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 35,000
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 35,000
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 0.9%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: OO
- --------------------------------------------------------------------------------
<PAGE>
- ----------------------------------- ------------------------------------
CUSIP No. 609150107 13D Page 9 of 22 Pages
- ----------------------------------- ------------------------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON Alfred D. Kingsley
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [_]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS: PF, AF, OO
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e): [_]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES
------- --------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 327,600
OWNED BY
------- --------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------- --------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 327,600
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 327,600
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 8.7%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- --------------------------------------------------------------------------------
<PAGE>
- ----------------------------------- ------------------------------------
CUSIP No. 609150107 13D Page 10 of 22 Pages
- ----------------------------------- ------------------------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON Gary K. Duberstein
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [_]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS: PF, AF, OO
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e): [_]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES
------- --------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 327,600
OWNED BY
------- --------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------- --------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 327,600
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 327,600
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 8.7%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- --------------------------------------------------------------------------------
<PAGE>
ITEM 1. SECURITY AND ISSUER.
This Statement on Schedule 13D (the "Statement") relates to the common
shares, without par value (the "Shares"), of The Monarch Machine Tool Company,
an Ohio corporation (the "Company" or "Monarch"). The principal executive
offices of the Company are located at 615 North Oak Street, Sidney, Ohio 45365.
ITEM 2. IDENTITY AND BACKGROUND.
This Statement is being filed by and on behalf of Greenway Partners, L.P.
("Greenway"), Greentree Partners, L.P. ("Greentree"), Greenhouse Partners, L.P.
("Greenhouse"), Greenhut, L.L.C. ("Greenhut"), Greenbelt Corp. ("Greenbelt"),
Greensea Offshore, L.P. ("Greensea"), Greenhut Overseas, L.L.C. ("Greenhut
Overseas"), Alfred D. Kingsley and Gary K. Duberstein (collectively, the
"Reporting Persons"). Each of Greenway, Greentree and Greenhouse is a Delaware
limited partnership. Each of Greenhut and Greenhut Overseas is a Delaware
limited liability company. Greenbelt is a Delaware corporation. Greensea is an
exempted limited partnership formed under the laws of the Cayman Islands. The
principal business of Greenway, Greentree and Greensea is investing in
securities. The principal business of Greenhouse is being the general partner of
Greenway. The principal business of Greenhut is being the general partner of
Greentree. The principal business of Greenhut Overseas is being the investment
general partner of Greensea. The principal business of Greenbelt is managing a
small number of accounts containing securities for which Greenbelt has voting
and dispositive power, and, consequently, is the beneficial owner. The present
principal occupation of each of Messrs. Kingsley and Duberstein is serving as
the general partners of Greenhouse and members of both Greenhut and Greenhut
Overseas. In addition, Mr. Kingsley is senior managing director, and Mr.
Duberstein is
Page 11
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managing director, of both Greenway and Greentree. Also, Mr. Kingsley is
president, and Mr. Duberstein is vice president, secretary and treasurer of
Greenbelt. During the last five years, none of the Reporting Persons has (i)
been convicted in a criminal proceeding or (ii) been a party to a civil
proceeding of a judicial or administrative body of competent jurisdiction and as
a result of such proceeding was or is subject to a judgment, decree or final
order enjoining future violations of, or prohibiting or mandating activities
subject to, federal or state securities laws or finding any violation with
respect to such laws. The business address of each of the Reporting Persons
(other than Greensea) is 277 Park Avenue, 27th Floor, New York, New York 10017.
The business address of Greensea is P.O. Box 1561, Mary Street, Grand Cayman,
Cayman Islands, British West Indies.
Messrs. Kingsley and Duberstein are both citizens of the United States.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
Greenway purchased an aggregate of 100,500 Shares for total consideration
(including brokerage commissions) of $983,898 derived from the capital of
Greenway and margin indebtedness from Bear Stearns & Co. Inc.
Greentree purchased an aggregate of 42,100 Shares for total consideration
(including brokerage commissions) of $418,499 derived from the capital of
Greentree and margin indebtedness from Bear Stearns & Co. Inc.
Greensea purchased an aggregate of 35,000 Shares for total consideration
(including brokerage commissions) of $341,850 derived from the capital of
Greensea and margin indebtedness from Bear Stearns & Co. Inc.
Accounts managed by Greenbelt purchased an aggregate of 150,000 Shares for
total consideration (including brokerage commissions) of $1,496,097 derived from
capital in the
Page 12
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managed accounts and margin indebtedness from Bear, Stearns & Co. Inc.,
Fahnestock & Co. Inc. and Lehman Brothers.
ITEM 4. PURPOSE OF THE TRANSACTION.
The Reporting Persons have acquired the Shares of the Company because, in
their opinion, such Shares are undervalued by the market. They intend to closely
monitor developments at the Company, especially in connection with the search
for a new chief executive officer and the implementation of any advice to the
Company by the investment banking firm of Lehman Brothers, Inc. concerning
methods for maximizing shareholder value.
The Reporting Persons supported a shareholder proposal proposed by another
shareholder at the 1995 Annual Meeting that called on the Company to engage an
investment banker to advise on ways to maximize shareholder value. That proposal
received over 40% of the vote. For the 1996 Annual Meeting, Greenway submitted
the same shareholder proposal, stating in its submission to the Company:
"We believe that engaging an investment banker with fresh ideas would
be helpful to the Board of Directors. In our opinion, Monarch is an
undervalued company with strong financials, which offer many options to
an astute investment banker. Given the state of the machine tool
industry and Monarch's position in it, we would urge the investment
banker to give strong consideration to the sale of Monarch to a larger
participant in the industry. Making Monarch part of a larger enterprise
should unlock value through synergies and economies of scale. Potential
buyers might include other machine tool companies such as Cincinnati
Milacron or machinery companies such as Ingersoll Rand. Such potential
purchasers could use stock and/or cash for an acquisition. Other
alternatives to be explored might include a leveraged buy-out by
management, possibly with the involvement of an employee stock
ownership plan (ESOP)."
The proposal by Greenway was not voted on at the 1996 Annual Meeting
because the Company mooted it by hiring Lehman Brothers. However, the Reporting
Persons are not aware of the public announcement of the implementation by the
Company of any specific recommendations by Lehman Brothers to maximize
shareholder value.
Page 13
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Notwithstanding the foregoing, however, it does appear that a change is
underway in terms of the leadership of the Company. According to the Company's
Report to Shareholders for the Second Quarter 1996, dated July 30, 1996, Robert
J. Siewert resigned as president of the Company in May 1996 and David E.
Lundeen, retired Vice President and Director of the Company, has been serving as
Acting President and C.E.O. during the search for a permanent replacement.
The Reporting Persons may discuss the Company from time to time with
members of the management of the Company and their advisers, and may communicate
with other shareholders and interested parties concerning the Company. Depending
on future developments, the plans of the Reporting Persons may change.
The Reporting Persons may from time-to-time (i) acquire additional Shares
(subject to availability at prices deemed favorable) in the open market, in
privately negotiated transactions or otherwise, or (ii) dispose of Shares at
prices deemed favorable in the open market, in privately negotiated transactions
or otherwise.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
(a) As of the date of this Statement, the Reporting Persons beneficially
owned in the aggregate 327,600 Shares constituting 8.7% of the outstanding
Shares (the percentage of Shares owned being based upon 3,744,967 Shares
outstanding at August 9, 1996 as set forth in the Company's Quarterly Report on
Form 10-Q for the quarterly period ended June 30, 1996). The Reporting Persons
may be deemed to have direct beneficial ownership of Shares as follows:
Page 14
<PAGE>
APPROXIMATE PERCENTAGE
NAME NUMBER OF SHARES OF OUTSTANDING SHARES
---- ---------------- ---------------------
Greenway 100,500 2.7%
Greentree 42,100 1.1%
Greenbelt 150,000 4.0%
Greensea 35,000 0.9%
Greenhouse, as the general partner of Greenway, may be deemed to own
beneficially (as that term is defined in Rule 13d-3 under the Securities
Exchange Act of 1934) Shares which Greenway may be deemed to possess direct
beneficial ownership. Each of Messrs. Kingsley and Duberstein, as general
partners of Greenhouse, may be deemed to beneficially own Shares which
Greenhouse may be deemed to beneficially own. Each of Messrs. Kingsley and
Duberstein disclaim beneficial ownership of such Shares for all other purposes.
Greenhut, as the general partner of Greentree, may be deemed to own
beneficially (as that term is defined in Rule 13d-3 under the Securities
Exchange Act of 1934) Shares which Greentree may be deemed to possess direct
beneficial ownership. Each of Messrs. Kingsley and Duberstein, as members of
Greenhut, may be deemed to beneficially own Shares which Greenhut may be deemed
to beneficially own. Each of Messrs. Kingsley and Duberstein disclaim beneficial
ownership of such Shares for all other purposes.
Greenhut Overseas, as the investment general partner of Greensea, may be
deemed to own beneficially (as that term is defined in Rule 13d-3 under the
Securities Exchange Act of 1934) Shares which Greensea may be deemed to possess
direct beneficial ownership. Each of Messrs. Kingsley and Duberstein, as members
of Greenhut Overseas, may be deemed to beneficially own Shares which Greenhut
Overseas may be deemed to beneficially own. Each of Messrs. Kingsley and
Duberstein disclaim beneficial ownership of such Shares for all other purposes.
Page 15
<PAGE>
Greenbelt has direct beneficial ownership of the Shares in the accounts
which it manages. Each of Messrs. Kingsley and Duberstein, as executive officers
and directors of Greenbelt, may be deemed to beneficially own Shares which
Greenbelt beneficially owns. Each of Messrs. Kingsley and Duberstein disclaim
beneficial ownership of such Shares for all other purposes.
(b) Greenway has the sole power to vote or direct the vote of 100,500
Shares and the sole power to dispose or direct the disposition of such Shares.
Greenhouse and Messrs. Kingsley and Duberstein may be deemed to share with
Greenway the power to vote or to direct the vote and to dispose or to direct the
disposition of such Shares.
Greentree has the sole power to vote or direct the vote of 42,100 Shares
and the sole power to dispose or direct the disposition of such Shares. Greenhut
and Messrs. Kingsley and Duberstein may be deemed to share with Greentree the
power to vote or to direct the vote and to dispose or to direct the disposition
of such Shares.
Greensea has the sole power to vote or direct the vote of 35,000 Shares and
the sole power to dispose or direct the disposition of such Shares. Greenhut
Overseas and Messrs. Kingsley and Duberstein may be deemed to share with
Greensea the power to vote or to direct the vote and to dispose or to direct the
disposition of such Shares.
Greenbelt has the sole power to vote or direct the vote of 150,000 Shares
held in managed accounts and the sole power to dispose or direct the disposition
of such Shares. Messrs. Kingsley and Duberstein may be deemed to share with
Greenbelt the power to vote or to direct the vote and to dispose or to direct
the disposition of such Shares.
(c) Information concerning transactions in the Shares by the Reporting
Persons during the past sixty days is set forth in Exhibit 1 attached hereto.
Page 16
<PAGE>
(d) No other person is known to have the right to receive or the power to
direct the receipt of dividends from, or the proceeds from the sale of, the
Shares, except that dividends from, or proceeds from the sale of Shares in each
respective account managed by Greenbelt will be delivered into each such
respective account. No such individual account has an interest in more than five
percent of the class of outstanding Shares.
(e) Not applicable.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER.
To the best of the knowledge of the Reporting Persons, there are no
contracts, arrangements, understandings or relationships (legal or otherwise)
among the Reporting Persons or between the Reporting Persons and any other
person with respect to any securities of the Company, including but not limited
to transfer or voting of any of the securities, finder's fees, joint ventures,
loan or option arrangements, puts or calls, guarantees of profits, division of
profits or loss, or the giving or withholding of proxies, except as follows: The
respective partnership agreements of Greenway and Greentree each contains
provisions whereby its general partner (i.e., Greenhouse in the case of Greenway
and Greenhut in the case of Greentree) will receive annually a certain
percentage of realized and unrealized profits, if any, derived from the
partnership's investments. The agreements governing Greensea provide that
Greenhut Overseas, as investment general partner, will receive annually a
certain percentage of realized and unrealized profits, if any, derived from
Greensea's investments. Greenbelt also receives annually a certain percentage of
realized and unrealized profits, if any, resulting from the investments in each
of its managed accounts.
Page 17
<PAGE>
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
The following Exhibits are filed herewith:
1. Information concerning transactions in the Shares effected by the
Reporting Persons in the last sixty days.
2. Joint Filing Agreement.
Page 18
<PAGE>
SIGNATURES
After reasonable inquiry and to the best of their knowledge and belief, the
undersigned certify that the information contained in this Statement is true,
complete and correct.
Dated: September 13, 1996
GREENHOUSE PARTNERS, L.P. GREENWAY PARTNERS, L.P.
By: Greenhouse Partners, L.P.,
its general partner
By: /s/ Gary K. Duberstein
Gary K. Duberstein, general By: /s/ Gary K. Duberstein
partner Gary K. Duberstein, general
partner
GREENHUT, L.L.C. GREENTREE PARTNERS, L.P.
By: Greenhut, L.L.C., its general
partner
By: /s/ Gary K. Duberstein
Gary K. Duberstein, Member By: /s/ Gary K. Duberstein
Gary K. Duberstein, Member
GREENHUT OVERSEAS, L.L.C. GREENSEA OFFSHORE, L.P.
By: Greenhut Overseas, L.L.C., its
investment general partner
By: /s/ Gary K. Duberstein
Gary K. Duberstein, Member By: /s/ Gary K. Duberstein
Gary K. Duberstein, Member
GREENBELT CORP.
By: /s/ Alfred D. Kingsley
Alfred D. Kingsley, President
/s/ Alfred D. Kingsley
Alfred D. Kingsley
/s/ Gary K. Duberstein
Gary K. Duberstein
Page 19
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
- ----------- -----------
1. Information concerning transactions in the Shares effected by the
Reporting Persons in the last sixty days.
2. Joint Filing Agreement.
Page 20
Exhibit 1
TRANSACTIONS IN SHARES OF THE COMPANY
DURING THE PAST 60 DAYS
The Reporting Persons engaged in the following transactions in Shares
of the Company during the past 60 days. All transactions involved purchases of
Shares on the New York Stock Exchange, unless marked (M) next to Number of
Shares to indicate a purchase on the Chicago Stock Exchange.
<TABLE>
<CAPTION>
REPORTING PERSON
WITH DIRECT
BENEFICIAL PRICE PER SHARE
OWNERSHIP DATE OF TRANSACTION NUMBER OF SHARES (EXCLUDING COMMISSION)
- --------- ------------------- ---------------- ----------------------
<S> <C> <C> <C>
Greenway 9/4/96 20,000 (M) 9.625
Greenway 9/5/96 5,000 9.875
Greenway 9/10/96 20,000 9.75
Greenway 9/10/96 5,000 9.875
Greenbelt 9/4/96 20,000 (M) 9.625
Greenbelt 9/10/96 45,000 9.875
Greenbelt 9/12/96 3,500 10
Greenbelt 9/13/96 4,500 10
Greensea 9/4/96 10,000 (M) 9.625
Greensea 9/11/96 10,000 9.875
</TABLE>
Page 21
Exhibit 2
JOINT FILING AGREEMENT
In accordance with Rule 13d-1(f) under the Securities Exchange Act of
1934, as amended, the persons named below agree to the joint filing on behalf of
each of them of a statement on Schedule 13D (including amendments thereto) with
respect to the common shares, without par value, of The Monarch Machine Tool
Company, and further agree that this Joint Filing Agreement be included as an
Exhibit to such joint filing. In evidence thereof, the undersigned, hereby
execute this Agreement this 13th day of September, 1996.
GREENHOUSE PARTNERS, L.P. GREENWAY PARTNERS, L.P.
By: Greenhouse Partners, L.P.,
its general partner
By: /s/ Gary K. Duberstein
Gary K. Duberstein, general By: /s/ Gary K. Duberstein
partner Gary K. Duberstein, general
partner
GREENHUT, L.L.C. GREENTREE PARTNERS, L.P.
By: Greenhut, L.L.C., its general
partner
By: /s/ Gary K. Duberstein
Gary K. Duberstein, Member By: /s/ Gary K. Duberstein
Gary K. Duberstein, Member
GREENHUT OVERSEAS, L.L.C. GREENSEA OFFSHORE, L.P.
By: Greenhut Overseas, L.L.C., its
investment general partner
By: /s/ Gary K. Duberstein
Gary K. Duberstein, Member By: /s/ Gary K. Duberstein
Gary K. Duberstein, Member
GREENBELT CORP.
By: /s/ Alfred D. Kingsley
Alfred D. Kingsley, President
/s/ Alfred D. Kingsley
Alfred D. Kingsley
/s/ Gary K. Duberstein
Gary K. Duberstein
Page 22
