UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No. 1 )*
Level 8 Systems, Inc. (formerly named Across Data Systems, Inc.)
- --------------------------------------------------------------------------------
(Name of Issuer)
Common Stock, $.01 par value per share
- --------------------------------------------------------------------------------
(Title of Class of Securities)
005018 10 6
- --------------------------------------------------------------------------------
(CUSIP Number)
_
Check the following box if a fee is being paid with this statement |_|. (A fee
is not required only if the filing 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).
*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>
SCHEDULE 13G
CUSIP No. 005018-10-6 Page 2 of 14 Pages
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
PEC Israel Economic Corporation
EIN 13-1143528
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
Maine
- --------------------------------------------------------------------------------
5 SOLE VOTING POWER
-0-
--------------------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 3,654,002
OWNED BY --------------------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON -0-
WITH --------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
3,654,002
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,654,002
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES [ ]
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
52.5%
- --------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT
<PAGE>
SCHEDULE 13G
CUSIP No. 005018-10-6 Page 3 of 14 Pages
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Discount Investment Corporation Ltd.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
Israel
- --------------------------------------------------------------------------------
5 SOLE VOTING POWER
-0-
--------------------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 3,654,002
OWNED BY --------------------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON -0-
WITH --------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
3,654,002
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,654,002
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES [ ]
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
52.5%
- --------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT
<PAGE>
SCHEDULE 13G
CUSIP No. 005018-10-6 Page 4 of 14 Pages
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
IDB Development Corporation Ltd.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
Israel
- --------------------------------------------------------------------------------
5 SOLE VOTING POWER
-0-
--------------------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 3,654,002
OWNED BY --------------------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON -0-
WITH --------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
3,654,002
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,654,002
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES [ ]
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
52.5%
- --------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT
<PAGE>
SCHEDULE 13G
CUSIP No. 005018-10-6 Page 5 of 14 Pages
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
IDB Holding Corporation Ltd.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
Israel
- --------------------------------------------------------------------------------
5 SOLE VOTING POWER
-0-
--------------------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 3,654,002
OWNED BY --------------------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON -0-
WITH --------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
3,654,002
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,654,002
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES [ ]
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
52.5%
- --------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT
<PAGE>
SCHEDULE 13G
CUSIP No. 005018-10-6 Page 6 of 14 Pages
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Raphael Recanati
Social Security No. ###-##-####
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
Israel
- --------------------------------------------------------------------------------
5 SOLE VOTING POWER
-0-
--------------------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 3,654,002
OWNED BY --------------------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON -0-
WITH --------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
3,654,002
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,654,002
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES [ ]
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
52.5%
- --------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT
<PAGE>
SCHEDULE 13G
CUSIP No. 005018-10-6 Page 7 of 14 Pages
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Jacob Recanati
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
Israel
- --------------------------------------------------------------------------------
5 SOLE VOTING POWER
-0-
--------------------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 3,654,002
OWNED BY --------------------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON -0-
WITH --------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
3,654,002
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,654,002
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES [ ]
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
52.5%
- --------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT
<PAGE>
SCHEDULE 13G
CUSIP No. 005018-10-6 Page 8 of 14 Pages
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Leon Y. Recanati
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
Israel
- --------------------------------------------------------------------------------
5 SOLE VOTING POWER
-0-
--------------------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 3,654,002
OWNED BY --------------------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON -0-
WITH --------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
3,654,002
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,654,002
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES [ ]
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
52.5%
- --------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT
<PAGE>
SCHEDULE 13G
CUSIP No. 005018-10-6 Page 9 of 14 Pages
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Judith Yovel Recanati
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
Israel
- --------------------------------------------------------------------------------
5 SOLE VOTING POWER
-0-
--------------------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 3,654,002
OWNED BY --------------------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON -0-
WITH --------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
3,654,002
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,654,002
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES [ ]
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
52.5%
- --------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT
<PAGE>
This Amendment No. 1 to Schedule 13G is filed by the Reporting Persons
who, by reason of their direct or indirect ownership of outstanding shares of
Liraz Systems Ltd. ("Liraz"), which has filed a Schedule 13G, as amended, in
respect of its beneficial ownership of shares of the Level 8 Systems, Inc.
(formerly named Across Data Systems, Inc.), may be deemed to share the power to
vote or dispose of such shares.
Item 1. Name of Issuer and Address of Issuer's Principal Executive Offices.
The Issuer is Level 8 Systems, Inc. (formerly named Across Data
Systems, Inc.), a New York corporation, and its principal executive offices are
located at One Penn Plaza, Suite 3401, New York, New York 10119-0002.
Item 2. Reporting Persons and Class of Securities.
(a), (b) and (c): The Reporting Persons are:
(1) PEC Israel Economic Corporation, a Maine corporation ("PEC"), with
its principal office at 511 Fifth Avenue, New York, New York 10017.
(2) Discount Investment Corporation Ltd., an Israeli corporation
("DIC"), with its principal office at 14 Beth Hashoeva Lane, Tel Aviv, Israel.
(3) IDB Development Corporation Ltd., an Israeli corporation ("IDB
Development"), with its principal office at The Tower, 3 Daniel Frisch Street,
Tel Aviv, Israel. PEC and DIC are each a subsidiary of IDB Development.
(4) IDB Holding Corporation Ltd., an Israeli corporation ("IDB
Holding"), with its principal office at The Tower, 3 Daniel Frisch Street, Tel
Aviv, Israel. As of December 31, 1996, IDB Holding owned approximately 71.54% of
the outstanding shares of IDB Development.
The following persons, all of whom are citizens of Israel, may by
reason of their interests in and relationships with IDB Holding be deemed to
control the corporations referred to in paragraphs (1)-(4) above:
Page 10 of 14 pages
<PAGE>
(5) Raphael Recanati, The Tower, 3 Daniel Frisch Street, Tel Aviv,
Israel.
(6) Jacob Recanati, 3 Habankim Street, Haifa, Israel.
(7) Leon Y. Recanati, The Tower, 3 Daniel Frisch Street, Tel Aviv,
Israel.
(8) Judith Yovel Recanati, 64 Kaplan Street, Herzliya, Israel.
Messrs. Raphael Recanati and Jacob Recanati are brothers and Mr. Leon
Y. Recanati and Mrs. Judith Yovel Recanati are brother and sister and are the
nephew and niece of Raphael and Jacob Recanati. Companies controlled by Messrs.
Raphael Recanati, Jacob Recanati and Leon Y. Recanati and Mrs. Judith Yovel
Recanati together beneficially owned 52.47% of equity and voting power of IDB
Holding as of December 31, 1996. Mr. Raphael Recanati is the Chairman of the
Board of Directors of IDB Holding, IDB Development, PEC and DIC. Mr. Jacob
Recanati is a Director of IDB Holding and Mr. Leon Y. Recanati is the Joint
Managing Director of IDB Holding and is a director of IDB Development.
(d) The class of securities to which this Schedule 13G relates is the
common stock, par value $.01 per share, of the Issuer (the "Common Stock").
(e) The CUSIP number for the Common Stock is 005018 10 6.
Item 3. If this statement is filed pursuant to Rule 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) |_| Investment Adviser registered under section 203 of the
Investment Advisers Act of 1940
Page 11 of 14 pages
<PAGE>
_
(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 ss.240.13d- 1(b)(1)(ii)(F)
_
(g) |_| Parent Holding Company, in accordance with
ss.240.13d-1(b)(ii)(G)(Note: See Item 7)
_
(h) |_| Group, in accordance with ss.240.13d- 1(b)(1)(ii)(H)
Item 4. Ownership.
None of the Reporting Persons owns directly any shares of Common
Stock. The Reporting Persons are advised by Liraz that as of December 31, 1996
Liraz and its wholly-owned subsidiary, Liraz Export (1990) Ltd. ("Liraz
Export"), beneficially owned 3,654,002 shares of Common Stock, which represented
52.5% of the total outstanding shares of Common Stock. Reference is made to Item
4 of the Schedule 13G filed by Liraz and Liraz Export.
The Reporting Persons are advised by Liraz that there were 5,159,770
outstanding ordinary shares of Liraz as of December 31, 1996. As of December 31,
1996, various of the Reporting Persons shared the power to vote and dispose of
1,668,166 ordinary shares of Liraz, or approximately 32.4% of the outstanding
ordinary shares of Liraz. As of such date, PEC and DIC each beneficially owned
834,083 ordinary shares of Liraz, or approximately 16.2% of the outstanding
ordinary shares of Liraz. As of such date, IDB Development, by reason of its
ownership interests in PEC and DIC, and IDB Holding, by reason of its ownership
interest in IDB Development, shared the power to vote and dispose of 1,668,166
ordinary shares of Liraz. In addition, as of such date, PEC and DIC held options
to purchase 381,035 ordinary shares of Liraz and 381,036 ordinary shares of
Liraz, respectively, or approximately 6.4% of Liraz each after exercise of such
options.
Mr. Arie Kilman, the Chief Executive Officer of the Issuer and the
Chairman of the Board of Directors and President of Liraz, PEC and DIC are
parties to a shareholders agreement (the "Liraz Shareholders Agreement")
pursuant to which Mr.
Page 12 of 14 pages
<PAGE>
Kilman, PEC and DIC have agreed to act together to elect directors of Liraz and
for certain other purposes. The Reporting Persons have been advised that Mr.
Kilman beneficially owns approximately 32.3% of the outstanding ordinary shares
of Liraz. By virtue of the Liraz Shareholders Agreement, the Reporting Persons
may be deemed to share the power to vote and dispose of the ordinary shares of
Liraz owned by Mr. Kilman but the Reporting Persons disclaim beneficial
ownership of such ordinary shares of Liraz.
The Reporting Persons may by reason of their interest in and
relationships with Liraz be deemed to share voting power and dispositive power
with respect to the 3,654,002 shares of Common Stock of the Issuer owned by
Liraz and Liraz Export.
Item 5. Ownership of Five Percent or Less of a Class.
Not Applicable.
Item 6. Ownership of More than Five Percent on Behalf of Another Person.
Reference is made to Item 4 of this Schedule 13G.
Item 7. Identification and Classification of the Subsidiary which Acquired the
Security Being Reported on By the Parent Holding Company.
Not Applicable.
Item 8. Identification and Classification of Members of the Group.
A group has filed this Schedule 13G pursuant to Rule 13d-1(c). Each
member of the group is identified in Item 2 above.
Item 9. Notice of Dissolution of Group.
Not Applicable.
Item 10. Certification.
Not Applicable.
Page 13 of 14 pages
<PAGE>
Signature
After reasonable inquiry and to the best knowledge and belief of the
undersigned, the undersigned hereby certify that the information set forth in
this Statement is true, complete and correct.
February 14, 1997 PEC Israel Economic Corporation
Discount Investment Corporation Ltd.
IDB Development Corporation Ltd.
IDB Holding Corporation Ltd.
Raphael Recanati
Jacob Recanati
Leon Recanati
Judith Yovel Recanati
By: PEC Israel Economic Corporation
By: s/JAMES I. EDELSON
------------------
James I. Edelson, Executive Vice
President of PEC Israel Economic
Corporation for itself and on behalf of
Discount Investment Corporation Ltd.,
IDB Development Corporation Ltd., IDB
Holding Corporation Ltd., Raphael
Recanati, Jacob Recanati, Leon Recanati
and Judith Yovel Recanati pursuant to
the agreements annexed to Schedule 13G
as Exhibits 1-7.
Page 14 of 14 pages
