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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
----------
(Amendment No. 4)
INLAND STEEL INDUSTRIES, INC.
(Name of Issuer)
Common Stock, $1.00 par value per share
(Title of class of securities)
457472108
(CUSIP number)
Gary K. Duberstein, Esq.
Greenway Partners, L.P.
277 Park Avenue, 27th Floor
New York, New York 10172 (212) 350-5100
(Name, address and telephone number of person authorized
to receive notices and communications)
May 13, 1998
(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(e), 13d-1(f) or 13d-1(g), check the following box
[_].
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 13d-7(b) for other
parties to whom copies are to be sent.
(Continued on following page(s))
(Page 1 of 16 Pages)
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NYFS11...:\92\56392\0003\1901\SCH5188Y.58B
<PAGE>
- ----------------------------------- ----------------------------------
CUSIP No. 457472108 13D Page 2 of 16 Pages
- ----------------------------------- ----------------------------------
- ------------------ -------------------------------------------------------------
1 NAME OF REPORTING PERSON GREENWAY PARTNERS, L.P.
I.R.S. IDENTIFICATION NO. 13-3714238
OF ABOVE PERSON (ENTITIES ONLY)
- ------------------ -------------------------------------------------------------
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: 830,000
SHARES
------- --------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
------- --------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 830,000
REPORTING
------- --------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- ------------------ -------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 830,000
- ------------------ -------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- ------------------ -------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 1.7%
- ------------------ -------------------------------------------------------------
14 TYPE OF REPORTING PERSON: PN
- ------------------ -------------------------------------------------------------
2
<PAGE>
- ----------------------------------- ----------------------------------
CUSIP No. 457472108 13D Page 3 of 16 Pages
- ----------------------------------- ----------------------------------
- ------------------ -------------------------------------------------------------
1 NAME OF REPORTING PERSON GREENTREE PARTNERS, L.P.
I.R.S. IDENTIFICATION NO. 13-3752875
OF ABOVE PERSON (ENTITIES ONLY)
- ------------------ -------------------------------------------------------------
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: 355,000
SHARES
------- --------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
------- --------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 355,000
REPORTING
------- --------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- ------------------ -------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 355,000
- ------------------ -------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- ------------------ -------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 0.7%
- ------------------ -------------------------------------------------------------
14 TYPE OF REPORTING PERSON: PN
- ------------------ -------------------------------------------------------------
3
<PAGE>
- ----------------------------------- ----------------------------------
CUSIP No. 457472108 13D Page 4 of 16 Pages
- ----------------------------------- ----------------------------------
- ------------------ -------------------------------------------------------------
1 NAME OF REPORTING PERSON GREENHOUSE PARTNERS, L.P.
I.R.S. IDENTIFICATION NO. 13-3793447
OF ABOVE PERSON (ENTITIES ONLY)
- ------------------ -------------------------------------------------------------
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: 830,000
OWNED BY
------- --------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------- --------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 830,000
- ------------------ -------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 830,000
- ------------------ -------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- ------------------ -------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 1.7%
- ------------------ -------------------------------------------------------------
14 TYPE OF REPORTING PERSON: PN
- ------------------ -------------------------------------------------------------
4
<PAGE>
- ----------------------------------- ----------------------------------
CUSIP No. 457472108 13D Page 5 of 16 Pages
- ----------------------------------- ----------------------------------
- ------------------ -------------------------------------------------------------
1 NAME OF REPORTING PERSON GREENHUT, L.L.C.
I.R.S. IDENTIFICATION NO. 13-3793450
OF ABOVE PERSON (ENTITIES ONLY)
- ------------------ -------------------------------------------------------------
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: 355,000
OWNED BY
------- --------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------- --------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 355,000
- ------------------ -------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 355,000
- ------------------ -------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- ------------------ -------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 0.7%
- ------------------ -------------------------------------------------------------
14 TYPE OF REPORTING PERSON: OO
- ------------------ -------------------------------------------------------------
5
<PAGE>
- ----------------------------------- ----------------------------------
CUSIP No. 457472108 13D Page 6 of 16 Pages
- ----------------------------------- ----------------------------------
- ------------------ -------------------------------------------------------------
1 NAME OF REPORTING PERSON GREENBELT CORP.
I.R.S. IDENTIFICATION NO. 13-3791931
OF ABOVE PERSON (ENTITIES ONLY)
- ------------------ -------------------------------------------------------------
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: 2,799,100
SHARES
------- --------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
------- --------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 2,799,100
REPORTING
------- --------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- ------------------ -------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 2,799,100
- ------------------ -------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- ------------------ -------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 5.7%
- ------------------ -------------------------------------------------------------
14 TYPE OF REPORTING PERSON: CO
- ------------------ -------------------------------------------------------------
6
<PAGE>
- ----------------------------------- ----------------------------------
CUSIP No. 457472108 13D Page 7 of 16 Pages
- ----------------------------------- ----------------------------------
- ------------------ -------------------------------------------------------------
1 NAME OF REPORTING PERSON GREENSEA OFFSHORE, L.P.
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: 630,700
SHARES
------- --------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
------- --------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 630,700
REPORTING
------- --------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- ------------------ -------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 630,700
- ------------------ -------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- ------------------ -------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 1.3%
- ------------------ -------------------------------------------------------------
14 TYPE OF REPORTING PERSON: PN
- ------------------ -------------------------------------------------------------
7
<PAGE>
- ----------------------------------- ----------------------------------
CUSIP No. 457472108 13D Page 8 of 16 Pages
- ----------------------------------- ----------------------------------
- ------------------ -------------------------------------------------------------
1 NAME OF REPORTING PERSON GREENHUT OVERSEAS, L.L.C.
I.R.S. IDENTIFICATION NO. 13-3868906
OF ABOVE PERSON (ENTITIES ONLY)
- ------------------ -------------------------------------------------------------
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: 630,700
OWNED BY
------- --------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------- --------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 630,700
- ------------------ -------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 630,700
- ------------------ -------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- ------------------ -------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 1.3%
- ------------------ -------------------------------------------------------------
14 TYPE OF REPORTING PERSON: OO
- ------------------ -------------------------------------------------------------
8
<PAGE>
- ----------------------------------- ----------------------------------
CUSIP No. 457472108 13D Page 9 of 16 Pages
- ----------------------------------- ----------------------------------
- ------------------ -------------------------------------------------------------
1 NAME OF REPORTING PERSON ALFRED D. KINGSLEY
I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON (ENTITIES ONLY)
- ------------------ -------------------------------------------------------------
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: 28,000
SHARES
------- --------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 4,614,800
OWNED BY
------- --------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 28,000
REPORTING
------- --------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 4,614,800
- ------------------ -------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 4,642,800
- ------------------ -------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- ------------------ -------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 9.5%
- ------------------ -------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ------------------ -------------------------------------------------------------
9
<PAGE>
- ----------------------------------- ----------------------------------
CUSIP No. 457472108 13D Page 10 of 16 Pages
- ----------------------------------- ----------------------------------
- ------------------ -------------------------------------------------------------
1 NAME OF REPORTING PERSON GARY K. DUBERSTEIN
I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON (ENTITIES ONLY)
- ------------------ -------------------------------------------------------------
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: 4,614,800
OWNED BY
------- --------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------- --------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 4,614,800
- ------------------ -------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 4,614,800
- ------------------ -------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- ------------------ -------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 9.4%
- ------------------ -------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ------------------ -------------------------------------------------------------
10
<PAGE>
This Amendment No. 4 ("Amendment No. 4") amends the Statement on
Schedule 13D (the "Schedule 13D") filed on February 21, 1997 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 ("Kingsley") and Gary
K. Duberstein ("Duberstein"; and together with the foregoing persons, the
"Reporting Persons"). Capitalized terms used herein and not defined herein have
the meanings ascribed thereto in the Schedule 13D.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
Since the filing of the Amendment No. 3 to the Schedule 13D,
Greentree purchased 30,000 Shares for total consideration (including brokerage
commissions) of $867,150 derived from the capital of Greentree and margin
indebtedness from Bear Stearns & Co. Inc.
Since the filing of the Amendment No. 3 to the Schedule 13D,
Greensea purchased an aggregate of 130,700 Shares for total consideration
(including brokerage commissions) of $3,683,466 derived from the capital of
Greensea and margin indebtedness from Bear Stearns & Co. Inc.
ITEM 4. PURPOSE OF THE TRANSACTION
As more fully discussed in Item 6 below, on May 13, 1998, the
Company and certain of the Reporting Persons entered into a letter agreement
(the "Letter Agreement") whereby such Reporting Persons agreed to withdraw
certain shareholder proposals from the agenda for the Company's 1998 Annual
Meeting and not to solicit proxies for these proposals. These shareholder
proposals are set forth in the Company's proxy materials in respect of its 1998
Annual Meeting and in such Reporting Persons' definitive proxy statement filed
with the Securities and Exchange Commission on March 3, 1998 and amended on
March 6, 1998.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
(a) As of the date of this Statement, the Reporting Persons
beneficially owned in the aggregate 4,642,800 Shares constituting 9.5% of the
outstanding Shares (the percentage of Shares owned being based upon 48,941,765
Shares outstanding on May 4, 1998 as set forth in the Company's quarterly report
on Form 10-Q for the fiscal quarter ended March 31, 1998). The Reporting Persons
may be deemed to have direct beneficial ownership of Shares as follows:
Approximate
Number of Percentage of
Name Shares Outstanding Shares
---- -------- ------------------
Greenway 830,000 1.7%
Greentree 355,000 0.7%
Greenbelt 2,799,100 5.7%
Greensea 630,700 1.3%
Alfred D. Kingsley 28,000 0.1%
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
Page 11 of 16 Pages
<PAGE>
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.
Greenbelt has direct beneficial ownership of the Shares in the
accounts which it manages. In addition, Greenbelt is the investment advisor for
Greenland Investment Company Limited, a Cayman Islands company ("Greenland"). In
such capacity, Greenbelt has the right to vote and direct the disposition of the
519,100 Shares held by Greenland and, consequently, has direct beneficial
ownership of such Shares. Substantially all of the equity interests in Greenland
are owned by Strategic Investment Partners Limited ("SIPL"). Because SIPL has
the right to elect to terminate its investment in Greenland upon less than 60
days' notice and, upon such termination, all securities held by Greenland would
be sold by Greenland or, with SIPL's consent, distributed to SIPL in kind, SIPL
could be deemed to be the beneficial owner of the Shares held by Greenland.
Information concerning SIPL and the identity and background of certain
individuals and entities related thereto is set forth on Exhibit 7 hereto and
incorporated herein by reference. Each of the 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
830,000 Shares and the sole power to dispose or to 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 dispose or to
direct the disposition of such Shares.
Greentree has the sole power to vote or direct the vote of 355,000
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 630,700
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 2,280,000
Shares held in managed accounts and the 519,100 Shares held by Greenland, and,
except as described in Item 5(a) with respect to Greenland, the sole power to
Page 12 of 16 Pages
<PAGE>
dispose or direct the disposition of all such Shares. Messrs. Kingsley and
Duberstein may be deemed to share with Greenbelt the power to direct the vote
and to dispose or to direct the disposition of such Shares.
Mr. Kingsley also has the sole power to vote or direct the vote of
28,000 Shares and the sole power to dispose or direct the disposition of such
Shares.
(c) Information concerning transactions in the Shares by the
Reporting Persons during the past sixty days or since the most recent filing on
Schedule 13D, whichever is less, is set forth in Exhibit 8 attached hereto,
which is incorporated herein by reference.
(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 the dividends from, or proceeds from the sale of Shares in
each respective account managed by Greenbelt or held by Greenland will be
delivered into each such respective account or Greenland, as the case may be.
Neither any such individual account nor Greenland has an interest in more than
five percent of the class of outstanding Shares.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER
On May 13, 1998, the Company and Greenway, Kingsley and Duberstein
(collectively, the "Participants") entered into the Letter Agreement. The Letter
Agreement provides for the Participants to withdraw from the agenda for the
Company's 1998 Annual Meeting, and not to solicit proxies in support of, the
Participants' non-binding proposals (the "Proposals") concerning (i) the
spin-off of the Company's Ryerson Tull subsidiary and (ii) the elimination of
the Company's Rights Plan unless it is approved by a vote of shareholders. The
Letter Agreement additionally provides that the withdrawal of the Proposals is
without prejudice to each Participant's right under Rule 14a-8 as promulgated
under the Exchange Act, to seek inclusion of one or both of the Proposals in the
Company's proxy statement for subsequent annual shareholders meetings without
the Company seeking to bar inclusion on the grounds that the Proposals were
included in the Company's proxy statement but not presented, or voted upon, at
the 1998 Annual Meeting. The Company has further agreed that the Participants
may include the Proposal in respect of the Rights Plan, or a similar proposal,
in the Company's 1999 proxy materials without compliance with Exchange Act Rule
14a-8. A copy of the Letter Agreement is attached hereto as Exhibit 9.
Page 13 of 16 Pages
<PAGE>
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
The following Exhibits are filed herewith:
7. Information Concerning Strategic Investment Partners Limited.
8. Information concerning transactions in the Shares effected by the
Reporting Persons in the last sixty days or since the most recent filing on
Schedule 13D, whichever is less.
9. Letter Agreement dated May 13, 1998 among Inland Steel
Industries, Inc., Greenway Partners, L.P., Alfred D. Kingsley and Gary K.
Duberstein.
Page 14 of 16 Pages
<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: May 20, 1998
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 15 of 16 Pages
<PAGE>
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
----------- -----------
7. Information Concerning Strategic Investment Partners
Limited.
8. Information concerning transactions in the Shares effected by
the Reporting Persons in the last sixty days or since the
most recent filing on Schedule 13D, whichever is less.
9. Letter Agreement dated May 13, 1998 among Inland Steel
Industries, Inc., Greenway Partners, L.P., Alfred D.
Kingsley and Gary K. Duberstein.
Page 16 of 16 Pages
Exhibit 7
INFORMATION CONCERNING STRATEGIC INVESTMENT PARTNERS LIMITED
------------------------------------------------------------
The information set forth in this Exhibit 7 was provided to the
Reporting Persons by Strategic Investment Partners Limited ("SIPL"). SIPL and
the persons referred to in this Exhibit 7 assume no responsibility for any other
information included in this filing. In addition, such persons expressly
disclaim beneficial ownership over all the Shares reported herein.
SIPL is a Cayman Islands corporation jointly owned by Quantum
Industrial Partners LDC ("QIP") and Quasar Strategic Partners LDC ("QSP"). SIPL
has its principal address at Kaya Flamboyan 9, Willemstad, Curacao, Netherlands
Antilles. The principal business of SIPL is investing in securities. Current
information concerning the identity and background of the directors and officers
of SIPL is set forth below.
Current information concerning each of SIPL, QIP and QSP (as well as
any other persons that may be deemed to have investment discretion over
securities held for the account of SIPL, QIP and QSP) is set forth below.
During the past five years, to the best of SIPL's knowledge, no
other person identified in this Exhibit 7 has been (a) convicted in a criminal
proceeding, or (b) a party to any civil proceeding of a judicial or
administrative body of competent jurisdiction as a result of which it or he has
been 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.
SIPL
The identity and background of the officers and directors of SIPL is
set forth below.
QIP AND QSP
Each of QIP and QSP is a Cayman Islands exempted limited duration
company with its principal address at Kaya Flamboyan 9, Willemstad, Curacao,
Netherlands Antilles. The principal business of QIP and QSP is investing in
securities.
NYFS11...:\92\56392\0003\1915\EXH5188R.44A
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Current information concerning the identity and background of the directors and
officers of QIP and QSP is set forth below.
QIH Management Investor, L.P. ("QIHMI"), an investment advisory firm
organized as a Delaware limited partnership, is a minority shareholder of, and
(pursuant to constituent documents of each of QIP and QSP) is vested with
investment discretion with respect to the portfolio assets held for the account
of QIP and QSP. The principal business of QIHMI is to provide management and
advisory services to, and to invest in, QIP and QSP. QIH Management Inc. ("QIH
Management"), a Delaware corporation of which Mr. George Soros is the sole
shareholder, is the sole general partner of QIHMI. The principal business of QIH
Management is to serve as the sole general partner of QIHMI. QIHMI and QIH
Management have their principal offices at 888 Seventh Avenue, 33rd Floor, New
York, New York 10106. QIHMI, by reason of its investment discretion over the
securities owned by QIP and QSP, and QIH Management, as the sole general partner
of QIHMI, may each be deemed the beneficial owner of the Shares held for the
account of QIP and QSP for purposes of Section 13(d) of the Securities Exchange
Act of 1934, as amended.
Mr. Soros has entered into an agreement dated as of January 1, 1997
with Soros Fund Management LLC ("SFM LLC"), a Delaware limited liability company
of which Mr. Soros is Chairman, pursuant to which Mr. Soros has, among other
things, agreed to use his best efforts to cause QIH Management, as the general
partner of QIHMI, to act at the direction of SFM LLC, which agreement to so act
shall terminate upon the earlier of (a) the assignment of SFM LLC of the legal
and beneficial ownership interest in QIH Management and (b) the assignment of
SFM LLC of the general partnership interest in QIHMI.
The business of SFM LLC is managed through a Management Committee
(the "Management Committee") comprised of Mr. Soros, Mr. Stanley Druckenmiller
and Mr. Gary Gladstein. SFM LLC has its principal office at 888 Seventh Avenue,
33rd Floor, New York, New York 10106. Its principal business is to serve,
pursuant to contract, as the principal investment manager to several foreign
investment companies (the "SFM Clients"). Mr. Soros, as Chairman of SFM LLC, has
the ability to direct the investment decisions of SFM LLC and as such may be
deemed to have investment discretion over the securities held for the accounts
of the SFM Clients. Mr. Druckenmiller, as Lead Portfolio Manager of SFM LLC, has
the ability to direct the investment decisions of SFM LLC and as such may be
deemed to have investment discretion over the securities held for the accounts
of the SFM Clients. Set forth below is a
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<PAGE>
list of the Managing Directors (the executive officers) of SFM LLC.
The principal occupation of Mr. Soros, a United States citizen, is
his direction of the activities of SFM LLC, which is carried out in his capacity
as Chairman of SFM LLC at SFM LLC's principal office. The principal occupation
of Mr. Druckenmiller is his position as Lead Portfolio Manager and Managing
Director of SFM LLC, which is carried out at SFM LLC's principal office.
DIRECTORS AND OFFICERS OF QSP
NAME/TITLE PRINCIPAL BUSINESS ADDRESS
CITIZENSHIP OCCUPATION (OR RESIDENCE)
----------- ---------- --------------
Curacao Corporation Managing Director Kaya Flamboyan 9
Company N.V. of Netherlands Willemstad
Managing Director Antilles Curacao,
(Netherlands corporations Netherlands
Antilles) Antilles
Inter Caribbean Administrative Citco Building
Services Limited services Wickhams Cay
Secretary Road Town
(British Virgin Tortola
Island) British Virgin
Islands
To the best of SIPL's knowledge:
(a) None of the above persons holds any Shares.
(b) None of the above persons has any contracts, arrangements,
understandings of relationships with respect to the Shares.
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<PAGE>
MANAGING DIRECTORS OF SFM LLC
The following is a list of all of the persons (other than Stanley
Druckenmiller) who serve as a Managing Director of SFM LLC:
Scott K.H. Bessent
Walter Burlock
Brian J. Corvese
L. Kevin Dann
Jeffrey L. Feinberg
Arminio Fraga
Gary Gladstein
Ron Hiram
Robert K. Jermain
David N. Kowitz
Alexander C. McAree
Paul McNulty
Gabriel S. Nechamkin
Steven Okin
Dale Precoda
Lief D. Rosenblatt
Frank V. Sica
Mark D. Sonnino
Filiberto H. Verticelli
Sean C. Warren
Each of the above-listed persons is a United States citizen whose principal
occupation is serving as Managing Director of SFM LLC, and each has a business
address c/o Soros Fund Management LLC, 888 Seventh Avenue, 33rd Floor, New York,
New York 10106.
To the best of SIPL's knowledge:
(a) None of the above persons holds any Shares.
(b) None of the above persons has any contracts, arrangements,
understandings or relationships with respect to the Shares.
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Exhibit 8
TRANSACTION IN SHARES OF THE COMPANY
The Reporting Persons engaged in the following transactions in
Shares of the Company during the past 60 days or since the most recent filing on
Schedule 13D, whichever is less. All transactions involved purchases of Shares
on the New York Stock Exchange.
Reporting
Person
With Direct Price Per Share
Beneficial Date of Number of (Excluding)
Ownership Transaction Shares Commission)
--------- ----------- ------ -----------
Greentree 4/23/98 30,000 $28.875
Greensea 3/27/98 7,200 $27.0191
Greensea 4/01/98 20,000 $27.25
Greensea 4/03/98 3,500 $27.00
Greensea 4/07/98 20,000 $26.75
Greensea 4/23/98 80,000 $28.875
EXHIBIT 9
GREENWAY PARTNERS, L.P.
277 PARK AVENUE, 27TH FLOOR
NEW YORK, NEW YORK 10172
May 13, 1998
Inland Steel Industries, Inc.
30 West Monroe Street
Chicago, Illinois 60603
Attn: Jay M. Gratz
Gentlemen:
This letter sets forth our understanding with respect to the
withdrawal by Greenway Partners, L.P. ("Greenway"), Alfred D. Kingsley and Gary
K. Duberstein (collectively, the "Participants") of (i) their shareholder
proposal and supporting statement with respect to the spin-off of Ryerson Tull
(the "Ryerson Tull Proposal") which (a) was submitted by letter of December 4,
1997 to Inland Steel Industries, Inc. (the "Company") from Greenway for
inclusion in the Company's proxy statement for its 1998 annual shareholders
meeting (the "Annual Meeting") pursuant to Rule 14a-8 promulgated pursuant to
the Securities Exchange Act of 1934, as amended (the "Exchange Act") and (b)
appears in the Participant's definitive proxy statement in respect of the Annual
Meeting as filed with the Securities and Exchange Commission (the "Commission")
on March 3, 1998 (as amended March 6, 1998, the "Definitive Proxy Statement")
and (ii) their shareholder proposal that the Company's rights plan be eliminated
unless approved by a vote of Inland's securities holders (the "Rights Plan
Proposal" and, together with the Ryerson Tull Proposal, the "Proposals"), which
also appears in the Definitive Proxy Statement.
The Participants no longer believe that it is in their best
interests to pursue the Proposals at this time. The Company announced on March
17, 1998 that it entered into a binding agreement to sell Inland Steel Company
to Ispat International N.V. ("Ispat") and that it intends to distribute a
significant portion of the net proceeds from the sale to its shareholders
through stock repurchases, dividends or a combination thereof.
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<PAGE>
Therefore, the Participants will withdraw from the agenda for the
Annual Meeting the Proposals and will not solicit proxies from securities
holders in favor of such Proposals in connection with the Annual Meeting.
The Participants are making their withdrawal on the condition that
the Company agrees that the withdrawal of the Proposals will be without
prejudice to each Participant's right in connection with the Company's
subsequent annual meetings to submit one or both of the Proposals or any similar
proposal for inclusion in the Company's proxy statement pursuant to Rule 14a-8
under the Exchange Act without the Company seeking to bar inclusion pursuant to
Rule 14a-8(a)(2) or Rule 14a-8(c)(12) thereunder on the grounds that the
Proposals were included in the Company's proxy statement in respect of the
Annual Meeting and the matters were not presented for action at the Annual
Meeting or voted on by the shareholders at the Annual Meeting.
The Company further agrees that, in connection with the Company's
1999 annual shareholders meeting, it will permit Greenway and the other
Participants to include in the Company's proxy materials, the Rights Plan
Proposal or a similar proposal, together with a supporting statement of up to
1000-words, so long as such proposal and supporting statement are provided to
the Company no later than January 20, 1999; it being expressly understood that
the Participants will not be required to comply with any of the requirements of
Rule 14a-8 of the Exchange Act in connection with the inclusion of such proposal
in the Company's proxy materials and that the submission of such proposal will
be without prejudice to each Participant's rights to submit one other proposal
in compliance with Rule 14a-8 of the Exchange Act. The Company hereby waives any
notice requirement pursuant to Article II, Section 2 of the Company's By-Laws
with respect to Greenway's and other Participants' presentation of said Rights
Plan Proposal or similar proposal at the Company's 1999 annual shareholders
meeting so long as such Participants timely submit said proposal and supporting
statement in accordance with the foregoing sentence.
Greenway and the Company further agree that as soon as practicable
they shall release to the press a joint statement in the form attached hereto as
Exhibit A.
If the foregoing correctly sets forth our understanding with respect
to the withdrawal of the Proposals, please so indicate by signing this letter
where indicated below and faxing
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the signed copy to the attention of Gary K. Duberstein at 212- 350-5253 and
mailing same to the attention of Gary K. Duberstein at the above address.
Very truly yours,
GREENWAY PARTNERS, L.P.
By Greenhouse Partners, L.P.
By: /s/ Gary K. Duberstein
------------------------------------
Gary K. Duberstein
General Partner
/s/ Alfred D. Kingsley
------------------------------------
Alfred D. Kingsley
/s/ Gary K. Duberstein
------------------------------------
Gary K. Duberstein
AGREED as of the
date first stated above
INLAND STEEL INDUSTRIES, INC.
By: /s/ Charles B. Salowitz
--------------------------------------------
Name: Charles B. Salowitz
Title: Associate General Counsel
and Secretary
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<PAGE>
EXHIBIT A
May 13, 1998
FOR IMMEDIATE RELEASE:
NEW YORK, NEW YORK. Inland Steel Industries, Inc. and Greenway
Partners, L.P., one of Inland's largest shareholders, announced today that they
have reached an agreement whereby Greenway will withdraw from the agenda for the
Company's upcoming 1998 Annual Meeting its proposals that Inland's management
consider the (i) spin-off of Ryerson Tull and (ii) elimination of Inland's
Rights Plan unless it is approved by Inland's shareholders.
Greenway supports Inland's recently announced sale of its Inland
Steel subsidiary to Ispat International N.V. and, subject to Board approval,
distribution of a portion of the net proceeds from the sale to Inland's
shareholders through stock repurchases, dividends or a combination thereof.
Greenway believes that the consummation of the Ispat sale would create value for
Inland's shareholders and accomplish the same goals that Greenway has supported
for more than a year through its Ryerson Tull spin-off proposal. Greenway is
pleased that Inland's management has been responsive to its goals and looks
forward to the consummation of the Ispat transaction.
Inland has agreed to permit Greenway to submit its non-binding
proposal for shareholder approval of Inland's Rights Plan, together with a
1,000-word supporting statement, for inclusion in the Company's proxy materials
for its 1999 Annual Meeting.
Greenway Partners, L.P. is a private investment fund.
Chicago-based Inland Steel Industries, Inc., is a materials
management, logistics and technical services company that provides value-added
steel products and materials-related services to manufacturers in the
automotive, appliance, furniture, equipment,
NYFS11...:\92\56392\0003\1915\REL5128T.26B
<PAGE>
electric motor and a variety of other industries. Its wholly-owned subsidiaries
include Inland Steel Company, the sixth largest U.S. steel producer, and Inland
International. In addition, it owns 87 percent of Ryerson Tull, Inc., the
largest North American metals and industrial plastics service center operation,
comprised of Joseph T. Ryerson & Son, Inc., J.M. Tull Metals Company, Inc., and
Ryerson de Mexico.
For further information, please call:
Inland Steel Industries, Inc.
M. Robert Weldner, III Ann Zastrow David C. Allen
General Manager, Investor Relations Media Relations
Communications & 1-312-899-3060 1-312-899-3322
Stakeholder Relations
1-312-899-3607
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