<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
SCHEDULE 13D
(Rule 13d-101)
Information to be Included in Statements
Filed Pursuant to 13d-1(a) and Amendments
thereto filed pursuant to 13d-2(a)
(AMENDMENT NO. 1)
COLUMBIA LABORATORIES, INC.
(Name of Issuer)
COMMON STOCK $ .01 PAR VALUE
(Title of Class of Securities)
197779101
-----------------
(CUSIP Number)
DAVID M. KNOTT
485 UNDERHILL BOULEVARD, SUITE 205,
SYOSSET, NEW YORK 11791-3419 (516) 364-0303
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
OCTOBER 2, 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(b)(3) or (4), check the following box [ ].
Note: Six copies of this statement, including all 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 pages)
Page 1 of 12
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SCHEDULE 13D
CUSIP No.197779101
<TABLE>
<C> <S>
===============================================================================================================================
1 Name of Reporting Person David M. Knott
S.S. or I.R.S. Identification No. of above Person SS# ###-##-####
- -------------------------------------------------------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group* (a) [X]
(b) [ ]
- -------------------------------------------------------------------------------------------------------------------------------
3 SEC Use Only
- -------------------------------------------------------------------------------------------------------------------------------
4 Source of Funds*
PF, OO
- -------------------------------------------------------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceeding is Required
Pursuant to Items 2(d) or 2(e) [ ]
- -------------------------------------------------------------------------------------------------------------------------------
6 Citizenship or Place of Organization U.S.A.
- -------------------------------------------------------------------------------------------------------------------------------
Number of 7 Sole Voting Power 1,056,300
Shares ---------------------------------------------------------------------------------------------
Beneficially 8 Shared Voting Power 92,600
Owned by ---------------------------------------------------------------------------------------------
Each 9 Sole Dispositive Power 1,056,300
Reporting ---------------------------------------------------------------------------------------------
Person 10 Shared Dispositive Power 99,200
With
- -------------------------------------------------------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person 1,155,500
- -------------------------------------------------------------------------------------------------------------------------------
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* IN
===============================================================================================================================
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 2 of 12
<PAGE>
SCHEDULE 13D
CUSIP No.197779101
<TABLE>
<C> <S>
===============================================================================================================================
1 Name of Reporting Person Knott Partners, L.P.
S.S. or I.R.S. Identification No. of above Person TIN# 11-2835793
- -------------------------------------------------------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group* (a) [X]
(b) [ ]
- -------------------------------------------------------------------------------------------------------------------------------
3 SEC Use Only
- -------------------------------------------------------------------------------------------------------------------------------
4 Source of Funds*
WC
- -------------------------------------------------------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceeding is Required
Pursuant to Items 2(d) or 2(e) [ ]
- -------------------------------------------------------------------------------------------------------------------------------
6 Citizenship or Place of Organization U.S.A.
- -------------------------------------------------------------------------------------------------------------------------------
Number of 7 Sole Voting Power 608,500
Shares ---------------------------------------------------------------------------------------------
Beneficially 8 Shared Voting Power
Owned by ---------------------------------------------------------------------------------------------
Each 9 Sole Dispositive Power 608,500
Reporting ---------------------------------------------------------------------------------------------
Person 10 Shared Dispositive Power
With
- -------------------------------------------------------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person 608,500
- -------------------------------------------------------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes
Certain Shares* [ ]
- -------------------------------------------------------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11) 2.1 %
- -------------------------------------------------------------------------------------------------------------------------------
14 Type of Reporting Person* PN
===============================================================================================================================
</TABLE>
Page 3 of 12
<PAGE>
SCHEDULE 13D
CUSIP No.197779101
<TABLE>
<C> <S>
===============================================================================================================================
1 Name of Reporting Person Dorset Management Corporation
S.S. or I.R.S. Identification No. of above Person TIN# 11-2873658
- -------------------------------------------------------------------------------------------------------------------------------
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 Proceeding is Required
Pursuant to Items 2(d) or 2(e) [ ]
- -------------------------------------------------------------------------------------------------------------------------------
6 Citizenship or Place of Organization U.S.A.
- -------------------------------------------------------------------------------------------------------------------------------
Number of 7 Sole Voting Power 399,600
Shares ---------------------------------------------------------------------------------------------
Beneficially 8 Shared Voting Power 85,400
Owned by ---------------------------------------------------------------------------------------------
Each 9 Sole Dispositive Power 399,600
Reporting ---------------------------------------------------------------------------------------------
Person 10 Shared Dispositive Power 85,400
With
- -------------------------------------------------------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person 485,000
- -------------------------------------------------------------------------------------------------------------------------------
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* CO
===============================================================================================================================
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 4 of 12
<PAGE>
SCHEDULE 13D
CUSIP No. 197779101
<TABLE>
<C> <S>
===============================================================================================================================
1 Name of Reporting Person Matterhorn Offshore Fund Limited
S.S. or I.R.S. Identification No. of above Person N/A
- -------------------------------------------------------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group* (a) [X]
(b) [ ]
- -------------------------------------------------------------------------------------------------------------------------------
3 SEC Use Only
- -------------------------------------------------------------------------------------------------------------------------------
4 Source of Funds*
WC
- -------------------------------------------------------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceeding is Required
Pursuant to Items 2(d) or 2(e) [ ]
- -------------------------------------------------------------------------------------------------------------------------------
6 Citizenship or Place of Organization British Virgin Islands
- -------------------------------------------------------------------------------------------------------------------------------
Number of 7 Sole Voting Power
Shares ---------------------------------------------------------------------------------------------
Beneficially 8 Shared Voting Power 85,400
Owned by ---------------------------------------------------------------------------------------------
Each 9 Sole Dispositive Power
Reporting ---------------------------------------------------------------------------------------------
Person 10 Shared Dispositive Power 85,400
With
- -------------------------------------------------------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person 85,400
- -------------------------------------------------------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes
Certain Shares* [ ]
- -------------------------------------------------------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11) 0.3%
- -------------------------------------------------------------------------------------------------------------------------------
14 Type of Reporting Person* CO
===============================================================================================================================
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 5 of 12
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SCHEDULE 13-D
Capitalized terms used herein without definition have the meanings
ascribed to them in the Schedule 13D filed on July 16, 1998 (the "Schedule 13D")
by (i) David M. Knott, (ii) Knott Partners, L.P., (iii) Dorset Management
Corporation, and (iv) Matterhorn Offshore Fund Limited (collectively, "Mr.
Knott").
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
The second paragraph of Item 3 is amended to read in full as follows:
The aggregate amount of consideration used by Mr. Knott in making such
acquisitions was $11,595,625. This amount includes all purchases of the Common
Stock made by Mr. Knott, including those purchases made more than 60 days from
the date of this filing. The aforementioned sources and amount of funds are
more particularly set forth below:
<TABLE>
<CAPTION>
SOURCE AMOUNT
- -------------------------------------------------------------- -----------
<S> <C>
David M. Knott (includes his IRA) $ 586,950
Mrs. David M. Knott (includes her IRA and the accounts of the 166,041
Knotts' minor children)
Knott Partners, L.P. 5,710,032
Matterhorn Offshore Fund Limited 721,572
The Common Fund 2,939,976
GAM Knott Hedge Investments, Inc. 963,766
Trinkaus Optima US Equities 487,269
Leonard & Margaret Frierman 20,019
-----------
TOTAL $11,595,625
===========
</TABLE>
ITEM 4. PURPOSE OF TRANSACTION
The second paragraph of Item 4 is hereby amended to read in full as
follows:
Following conversations with the persons named in the response to Item
6 below, efforts to participate on or otherwise change the Company's board of
directors or management and/or changes in the Company's business strategy began
to be pursued by Mr. Knott, either alone or in conjunction with such other
persons. The specific changes in personnel and business strategy being pursued
by Mr. Knott in conjunction with the Other Reporting Persons (as defined below)
are set forth in the letter dated October 2, 1998 (the "Letter") issued by the
Committee to Improve Shareholder Value of Columbia Laboratories (the
"Committee") incorporated by reference herein pursuant to Item 7 below.
Page 6 of 12
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Item 4 is hereby further amended to add the following:
Messrs. James J. Apostolakis, David Ray, Bernard Marden, Anthony R.
Campbell and Christopher Castroviejo (collectively, the "Other Reporting
Persons") and Mr. Knott have formed the Committee, of which they are presently
the sole members. The Other Reporting Persons have filed a separate Schedule
13D.
During the latter part of the summer, certain of the Other Reporting
Persons and Mr. Knott had further conversations with the Company's senior
management regarding immediate steps to address shareholder concerns over the
collapse of the Company's stock price and the perceived ineffectiveness of
current management. These conversations were unproductive.
Accordingly, on October 2, 1998, the Committee issued the Letter to
the Board of Directors of the Company, and each Director individually, to call
their urgent attention to these matters.
Mr. Knott is hopeful that the Company's directors will respond
constructively to the Letter. In the absence of a prompt and positive response,
however, the Letter reserves the right to take other action with respect to the
Company, including, without limitation, going to court to demand that the
Company schedule and hold a 1998 annual meeting of shareholders as required by
Delaware law and seeking to nominate candidates to the Company's Board of
Directors at such a meeting.
No 1998 annual meeting of the Company's shareholders has been
announced and to Mr. Knott's knowledge no such meeting is scheduled. Any action
with respect to a future shareholders meeting, including any decision to seek to
nominate candidates to the Company's Board of Directors or to take other action
in that regard, would be pursued only in connection with such a meeting and in
the context of the circumstances then obtaining, and in compliance with
applicable rules of the Securities and Exchange Commission.
ITEM 5. INTEREST IN SECURITIES OF THE COMPANY
Item 5 is hereby amended to read in full as follows:
(a) As reported in Amendment No. 2 to the Schedule 13D filed by the
Other Reporting Persons on October 6, 1998, an aggregate of 3,912,800 shares of
the Company's Common Stock, representing approximately 13.6% of the shares of
outstanding Common Stock, were beneficially owned by Mr. Knott and the Other
Reporting Persons, 2,768,100 shares of which, representing approximately 9.7%
of the shares of the outstanding Common Stock/1/, were beneficially owned by the
Other Reporting Persons.
- ------------------
/1/ Based upon 28,684,687 shares of Common Stock reported by the Company
to be outstanding as of July 31, 1998.
Page 7 of 12
<PAGE>
Mr. Knott beneficially owns 1,155,500 shares of the Company's Common
Stock, which represents 4.0% of all outstanding Common Stock of the Company and
includes all of the shares beneficially owned by the persons named below in this
Paragraph (a).
The Partnership beneficially owns 608,500 shares of the Company's
Common Stock, which represents 2.1% of all outstanding Common Stock of the
Company.
Dorset beneficially owns 485,000 shares of the Company's Common Stock,
which represents 1.7% of all outstanding Common Stock of the Company and
includes all of the shares beneficially owned by Matterhorn.
Matterhorn beneficially owns 85,400 shares of the Company's Common
Stock, which represents 0.3% of all outstanding Common Stock of the Company.
(b) David M. Knott individually (i) has the sole power to vote and to
dispose of (1) 48,200 shares of the Company's Common Stock held in his and his
IRA's accounts and (2) 608,500 shares held in the Partnership's account, (ii)
shares with the respective account owners the power to vote and to dispose of
7,200 shares held by the accounts of his minor children, and (iii) shares with
the respective account owners the power to dispose of (but not to vote) 6,600
shares held by the accounts of Mrs. David M. Knott and her IRA.
As President of Dorset, David M. Knott (iv) has the sole power to vote
and to dispose of 399,600 shares of the Company's Common Stock and (v) shares
with the respective account owner the power to vote and to dispose of 85,400
shares held in Matterhorn's account.
The Partnership (except through its sole general partner, David M.
Knott) neither holds nor shares with any person the power to vote or to dispose
of the Company's Common Stock.
Matterhorn shares with Dorset and David M. Knott the power to vote and
to dispose of 85,400 shares held by Matterhorn.
(c) Each transaction in the Common Stock made by Mr. Knott during the
past 60 days is described on Schedule 1 annexed hereto. All such transactions
were effected in the open market in ordinary brokerage transactions through
various broker-dealer firms.
(d) Of the 1,155,500 shares of Common Stock beneficially owned by Mr.
Knott, all but the 55,400 shares held in his and his IRA's accounts and the
accounts of his minor children are owned on behalf of other persons or entities
having the right to receive and the power to direct the receipt of dividends
from, and proceeds from the sale of, such shares. No individual person or
entity has such right with regard to greater than five percent of the class of
Common Stock.
(e) Not applicable.
Page 8 of 12
<PAGE>
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE COMPANY
The second paragraph of item 6 is hereby amended to read in full as
follows:
Mr. Knott has had conversations with some of the Other Reporting
Persons and members of the Company's management concerning the Company's recent
performance, with a view to effecting changes in the Company's board of
directors or management and/or changes in the Company's business strategy.
Notwithstanding these conversations and the issuance of the Letter, to date no
arrangements or understandings have been reached with management of the Company.
Mr. Knott has agreed on behalf of the persons named in Item 2 to share with the
Other Reporting Persons and entities affiliated with them the costs of common
counsel to pursue these activities. Accordingly, such persons may be deemed to
constitute a group, the other members of which are filing separate Schedules
13D.
ITEM 7. MATERIALS TO BE FILED AS EXHIBITS
1. Letter dated October 2, 1998 issued by The Committee to Improve
Shareholder Value of Columbia Laboratories. Incorporated by referenced to
Exhibit No. 2 to Amendment No. 2 to the Schedule 13D filed by the Other
Reporting Persons on October 6, 1998.
Page 9 of 12
<PAGE>
SIGNATURE
---------
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
/s/ David M. Knott
-----------------------------------------
DAVID M. KNOTT
KNOTT PARTNERS, L.P.
By: /s/ David M. Knott
--------------------------------------
David M. Knott, General Partner
DORSET MANAGEMENT CORPORATION
By: /s/ David M. Knott
--------------------------------------
David M. Knott, President
MATTERHORN OFFSHORE FUND LIMITED
By: Inter Caribbean Services, Ltd., Sole Director
By: /s/ Wiekert Weber
-------------------------------------
Wiekert Weber, Attorney-in-Fact A
-----------------------------------
Dated: October 13, 1998
Page 10 of 12
<PAGE>
SCHEDULE 1
<TABLE>
<CAPTION>
TRANSACTION PERSON NAMED IN NUMBER PRICE PER
DATE ITEM 5, PARAGRAPH (a) TRANSACTION TYPE OF SHARES SHARE ($)
- ----------- ----------------------------- ---------------- --------- ----------
<C> <S> <C> <C> <C>
8/18/98 Mr. Knott/Dorset Purchase 2,400 5.80
8/24/98 Mr. Knott/Dorset Purchase 6,400 5.11
8/25/98 Mr. Knott/Dorset Purchase 2,800 4.78
8/31/98 Mr. Knott/Dorset Purchase 7,200 2.54
9/1/98 Mr. Knott/Dorset Purchase 5,800 2.69
9/14/98 Mr. Knott/Dorset Purchase 2,500 4.17
9/15/98 Mr. Knott/Dorset Purchase 3,300 3.98
9/23/98 Mr. Knott/Dorset Purchase 2,600 4.43
10/8/98 Mr. Knott/Dorset Purchase 2,200 2.61
9/23/98 Mr. Knott/Dorset Purchase 100 4.43
8/18/98 Mr. Knott/Dorset Purchase 1,500 5.80
8/24/98 Mr. Knott/Dorset Purchase 300 5.11
8/25/98 Mr. Knott/Dorset Purchase 1,800 4.78
8/31/98 Mr. Knott/Dorset Purchase 3,600 2.54
9/1/98 Mr. Knott/Dorset Purchase 5,300 2.69
9/14/98 Mr. Knott/Dorset Purchase 1,600 4.18
9/23/98 Mr. Knott/Dorset Purchase 1,400 4.43
10/8/98 Mr. Knott/Dorset Purchase 1,100 2.61
8/18/98 Mr. Knott/Partnership Purchase 6,800 5.80
8/24/98 Mr. Knott/Partnership Purchase 8,000 5.11
8/25/98 Mr. Knott/Partnership Purchase 9,200 4.78
8/31/98 Mr. Knott/Partnership Purchase 16,800 2.54
9/1/98 Mr. Knott/Partnership Purchase 18,000 2.69
9/11/98 Mr. Knott/Partnership Purchase 2,900 3.82
9/14/98 Mr. Knott/Partnership Purchase 4,800 4.18
9/15/98 Mr. Knott/Partnership Purchase 6,100 3.99
9/23/98 Mr. Knott/Partnership Purchase 6,300 4.43
10/8/98 Mr. Knott/Partnership Purchase 5,600 2.61
8/18/98 Mr. Knott/Dorset/Matterhorn Purchase 900 5.80
</TABLE>
Page 11 of 12
<PAGE>
<TABLE>
<CAPTION>
TRANSACTION PERSON NAMED IN NUMBER PRICE PER
DATE ITEM 5, PARAGRAPH (a) TRANSACTION TYPE OF SHARES SHARE ($)
- ----------- ----------------------------- ---------------- --------- ----------
<C> <S> <C> <C> <C>
8/24/98 Mr. Knott/Dorset/Matterhorn Purchase 300 5.11
8/25/98 Mr. Knott/Dorset/Matterhorn Purchase 1,200 4.78
8/31/98 Mr. Knott/Dorset/Matterhorn Purchase 2,400 2.54
9/1/98 Mr. Knott/Dorset/Matterhorn Purchase 2,800 2.69
9/14/98 Mr. Knott/Dorset/Matterhorn Purchase 1,100 4.17
9/23/98 Mr. Knott/Dorset/Matterhorn Purchase 500 4.43
10/8/98 Mr. Knott/Dorset/Matterhorn Purchase 800 2.61
8/18/98 Mr. Knott/Dorset Purchase 400 5.80
9/15/98 Mr. Knott/Dorset Purchase 600 3.98
9/23/98 Mr. Knott/Dorset Purchase 700 4.43
10/8/98 Mr. Knott/Dorset Purchase 300 2.61
</TABLE>
Page 12 of 12
