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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13G
(RULE 13D-102)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO
RULES 13D-1(B) AND (C) AND AMENDMENTS THERETO FILED PURSUANT
TO RULE 13D-2(B)
(AMENDMENT NO. 2 )*
LEVEL 8 SYSTEMS, INC.
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(NAME OF ISSUER)
COMMON STOCK, $.01 PAR VALUE PER SHARE
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(TITLE OF CLASS OF SECURITIES)
005018 10 6
--------------------------------
(CUSIP NUMBER)
*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 13 pages
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SCHEDULE 13G
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CUSIP No. 005018-10-6 Page 2 of 13 Pages
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
PEC Israel Economic Corporation
EIN 13-1143528
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |X|
(b) |_|
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
Maine
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NUMBER OF 5 SOLE VOTING POWER
SHARES -0-
BENEFICIALLY -----------------------------------------------
OWNED BY EACH 6 SHARED VOTING POWER
REPORTING 3,654,002
PERSON WITH
-----------------------------------------------
7 SOLE DISPOSITIVE POWER
-0-
-----------------------------------------------
8 SHARED DISPOSITIVE POWER
3,654,002
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,654,002
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10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES |_|
CERTAIN SHARES
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
51.87%
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12 TYPE OF REPORTING PERSON
CO
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SCHEDULE 13G
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CUSIP No. 005018-10-6 Page 3 of 13 Pages
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
Discount Investment Corporation Ltd.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |X|
(b) |_|
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
Israel
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NUMBER OF 5 SOLE VOTING POWER
SHARES -0-
BENEFICIALLY -----------------------------------------------
OWNED BY EACH 6 SHARED VOTING POWER
REPORTING 3,654,002
PERSON WITH
-----------------------------------------------
7 SOLE DISPOSITIVE POWER
-0-
-----------------------------------------------
8 SHARED DISPOSITIVE POWER
3,654,002
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,654,002
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10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
CERTAIN SHARES |_|
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
51.87%
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12 TYPE OF REPORTING PERSON
CO
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SCHEDULE 13G
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CUSIP No. 005018-10-6 Page 4 of 13 Pages
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
IDB Development Corporation Ltd.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |X|
(b) |_|
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
Israel
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NUMBER OF 5 SOLE VOTING POWER
SHARES -0-
BENEFICIALLY -----------------------------------------------
OWNED BY EACH 6 SHARED VOTING POWER
REPORTING 3,654,002
PERSON WITH
-----------------------------------------------
7 SOLE DISPOSITIVE POWER
-0-
-----------------------------------------------
8 SHARED DISPOSITIVE POWER
3,654,002
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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
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
51.87%
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12 TYPE OF REPORTING PERSON
CO
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<PAGE>
SCHEDULE 13G
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CUSIP No. 005018-10-6 Page 5 of 13 Pages
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
IDB Holding Corporation Ltd.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |X|
(b) |_|
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
Israel
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NUMBER OF 5 SOLE VOTING POWER
SHARES -0-
BENEFICIALLY -----------------------------------------------
OWNED BY EACH 6 SHARED VOTING POWER
REPORTING 3,654,002
PERSON WITH
-----------------------------------------------
7 SOLE DISPOSITIVE POWER
-0-
-----------------------------------------------
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
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
51.87%
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12 TYPE OF REPORTING PERSON
CO
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<PAGE>
SCHEDULE 13G
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CUSIP No. 005018-10-6 Page 6 of 13 Pages
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
Raphael Recanati
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |X|
(b) |_|
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
Israel
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NUMBER OF 5 SOLE VOTING POWER
SHARES -0-
BENEFICIALLY -----------------------------------------------
OWNED BY EACH 6 SHARED VOTING POWER
REPORTING 3,654,002
PERSON WITH
-----------------------------------------------
7 SOLE DISPOSITIVE POWER
-0-
-----------------------------------------------
8 SHARED DISPOSITIVE POWER
3,654,002
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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
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
51.87%
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12 TYPE OF REPORTING PERSON
IN
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SCHEDULE 13G
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CUSIP No. 005018-10-6 Page 7 of 13 Pages
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
Elaine Recanati
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |X|
(b) |_|
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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NUMBER OF 5 SOLE VOTING POWER
SHARES -0-
BENEFICIALLY -----------------------------------------------
OWNED BY EACH 6 SHARED VOTING POWER
REPORTING 3,654,002
PERSON WITH
-----------------------------------------------
7 SOLE DISPOSITIVE POWER
-0-
-----------------------------------------------
8 SHARED DISPOSITIVE POWER
3,654,002
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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
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
51.87%
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12 TYPE OF REPORTING PERSON
IN
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SCHEDULE 13G
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CUSIP No. 005018-10-6 Page 8 of 13 Pages
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
Leon Y. Recanati
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |X|
(b) |_|
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
Israel
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NUMBER OF 5 SOLE VOTING POWER
SHARES -0-
BENEFICIALLY -----------------------------------------------
OWNED BY EACH 6 SHARED VOTING POWER
REPORTING 3,654,002
PERSON WITH
-----------------------------------------------
7 SOLE DISPOSITIVE POWER
-0-
-----------------------------------------------
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)
51.87%
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12 TYPE OF REPORTING PERSON
IN
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SCHEDULE 13G
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CUSIP No. 005018-10-6 Page 9 of 13 Pages
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
Judith Yovel Recanati
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |X|
(b) |_|
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
Israel
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NUMBER OF 5 SOLE VOTING POWER
SHARES -0-
BENEFICIALLY -----------------------------------------------
OWNED BY EACH 6 SHARED VOTING POWER
REPORTING 3,654,002
PERSON WITH
-----------------------------------------------
7 SOLE DISPOSITIVE POWER
-0-
-----------------------------------------------
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)
51.87%
------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON
IN
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<PAGE>
This Amendment No. 2 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., may
be deemed to share the power to vote or dispose of such shares. Unless
otherwise defined in this Amendment No. 2 to Schedule 13G, capitalized terms
used in this Amendment No. 2 are defined in this Statement on Schedule 13G, as
previously filed.
The following amends Items 2 and 4 of this Statement on Schedule 13G,
as previously filed.
Item 2. REPORTING PERSONS AND CLASS OF SECURITIES.
(a), (b) and (c): In March 1997, Mr. Jacob Recanati died and ceased to
be a Reporting Person. Mrs. Elaine Recanati, a United States citizen whose
residence is located at 57 Margalit Street, Haifa, Israel is hereby added as a
Reporting Person. Mrs. Recanati is the widow of Mr. Jacob Recanati.
Mr. Raphael Recanati and Mrs. Elaine Recanati are brother-in-law and
sister-in-law and Mr. Leon Y. Recanati and Mrs. Judith Yovel Recanati are
brother and sister and are the nephew and niece of Mr. Raphael Recanati and Mrs.
Elaine Recanati. Companies controlled by Raphael Recanati, Elaine Recanati,
Leon Y. Recanati and Judith Yovel Recanati together beneficially owned 52.47% of
equity and voting power of IDB Holding as of December 31, 1997. Mr. Raphael
Recanati is the Chairman of the Board of Directors of IDB Holding, IDB
Development and PEC. Mr. Leon Y. Recanati is the Joint Managing Director of IDB
Holding and is a director of IDB Development.
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, 1997
Liraz and its wholly-owned subsidiary, Liraz Export (1990) Ltd. ("Liraz
Export"), beneficially owned 3,654,002 shares of Common Stock, which represented
51.87% of the 7,044,634 outstanding shares of Common Stock. Reference is made
to Item 4 of the Schedule 13G filed by Liraz and Liraz Export.
Page 10 of 13 pages
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The Reporting Persons are advised by Liraz that there were 5,222,998
outstanding ordinary shares of Liraz as of December 31, 1997. As of December
31, 1997, various of the Reporting Persons shared the power to vote and dispose
of 1,656,766 ordinary shares of Liraz, or approximately 31.7% of the
outstanding ordinary shares of Liraz. As of such date, PEC and DIC each
beneficially owned 828,383 ordinary shares of Liraz, or approximately 15.86% 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 1,656,766 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. 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 1,170,670 ordinary shares of
Liraz, or approximately 22.4% 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.
Page 11 of 13 pages
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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 amendment to the Statement is true, complete and correct.
February 13, 1998 PEC ISRAEL ECONOMIC CORPORATION
DISCOUNT INVESTMENT CORPORATION LTD.
IDB DEVELOPMENT CORPORATION LTD.
IDB HOLDING CORPORATION LTD.
RAPHAEL RECANATI
ELAINE 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, Elaine Recanati, Leon Recanati
and Judith Yovel Recanati pursuant to
the agreements annexed as Exhibits 1-4
and 6 and 7 to amendment no. 1 to Schedule 13G and as
Exhibit 1 hereto.
Page 12 of 13 pages
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EXHIBIT INDEX
Exhibit 1 Agreement dated January 30, 1998 between Elaine
Recanati and PEC authorizing PEC to file this Schedule
13G and any amendment hereto on behalf of Mrs.
Recanati.
Page 13 of 13 pages
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EXHIBIT 99.1
January 30, 1998
PEC Israel Economic Corporation
511 Fifth Avenue
New York, New York 10017
Gentlemen:
Pursuant to Rule 13d-1(f)(iii) promulgated under the Securities
Exchange Act of 1934, as amended, the undersigned hereby agrees that PEC Israel
Economic Corporation ("PEC") may file as necessary on behalf of the undersigned
with the Securities and Exchange Commission a Schedule 13G or a Schedule 13D and
any amendments thereto in respect of shares of each of Gilat Communications
Ltd., Level 8 Systems, Inc., Logal Educational Software and Systems Ltd., Nice-
Systems Ltd., Super-Sol Ltd. and Tefron Ltd. purchased, owned or sold from time
to time by the undersigned.
PEC is hereby authorized to file a copy of this letter as an exhibit
to said Schedule 13G or Schedule 13D or any amendments thereto.
Very truly yours,
/s/ E. RECANATI
---------------------------------
Elaine Recanati
Agreed: PEC Israel Economic Corporation
By: /s/ JAMES I. EDELSON
------------------------------
James I. Edelson,
Executive Vice President
