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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D/A
Under the Securities Exchange Act of 1934
(Amendment No. 3)*
REYNOLDS METALS COMPANY
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(Name of issuer)
COMMON STOCK, no par value
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(Title of class of securities)
761763 101
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(CUSIP number)
Highfields Capital Management LP
Attention: Kenneth H. Colburn
200 Clarendon Street
51st Floor
Boston, MA 02117
(617) 850-7500
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(Name, address and telephone number of person authorized to receive notices and
communications)
August 19, 1999
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(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 [_].
(Continued on the following pages)
(Page 1 of 8 Pages)
__________________________
*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
disclosures provided in a prior cover page.
The information required on 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 or otherwise subject to the liabilities of that section of the Act but
shall be subject to all other provisions of the Act.
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SCHEDULE 13D/A
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CUSIP NO. 761763 101 PAGE 2 OF 8 PAGES
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NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Highfields Capital Management LP
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [_]
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SEC USE ONLY
3
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SOURCE OF FUNDS*
4
WC
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CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
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CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
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SOLE VOTING POWER
7
NUMBER OF
4,339,900
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY None
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
4,339,900
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
None
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
4,339,900
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CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
6.9%**
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TYPE OF REPORTING PERSON*
14
PN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
**The increase in the percentage is due solely to the decrease in the number of
outstanding shares of common stock of Reynolds Metals Company to 62,887,628
shares as reported in Reynolds Metals Company's Quarterly Report on Form 10-Q
for the quarter ending June 30, 1999 (the "Second Quarter 10-Q").
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SCHEDULE 13D/A
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CUSIP NO. 761763 101 PAGE 3 OF 8 PAGES
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NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Highfields GP LLC
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [_]
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SEC USE ONLY
3
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SOURCE OF FUNDS*
4
AF
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CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
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CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
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SOLE VOTING POWER
7
NUMBER OF
4,339,900
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY None
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
4,339,900
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
None
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
4,339,900
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CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
6.9%**
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TYPE OF REPORTING PERSON*
14
OO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
**The increase in the percentage is due solely to the decrease in the number of
outstanding shares of common stock of Reynolds Metals Company to 62,887,628
shares as reported in the Second Quarter 10-Q.
<PAGE>
SCHEDULE 13D/A
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CUSIP NO. 761763 101 PAGE 4 OF 8 PAGES
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NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Jonathon S. Jacobson
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [_]
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SEC USE ONLY
3
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SOURCE OF FUNDS*
4
AF
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CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
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CITIZENSHIP OR PLACE OF ORGANIZATION
6
United States
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SOLE VOTING POWER
7
NUMBER OF
4,339,900
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY None
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
4,339,900
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
None
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
4,339,900
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
6.9%**
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TYPE OF REPORTING PERSON*
14
IN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
**The increase in the percentage is due solely to the decrease in the number of
outstanding shares of common stock of Reynolds Metals Company to 62,887,628
shares as reported in the Second Quarter 10-Q.
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SCHEDULE 13D/A
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CUSIP NO. 761763 101 PAGE 5 OF 8 PAGES
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NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Richard L. Grubman
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [_]
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SEC USE ONLY
3
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SOURCE OF FUNDS*
4
AF
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CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
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CITIZENSHIP OR PLACE OF ORGANIZATION
6
United States
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SOLE VOTING POWER
7
NUMBER OF
4,339,900
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY None
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
4,339,900
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
None
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
4,339,900
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
6.9%**
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
IN
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
**The increase in the percentage is due solely to the decrease in the number of
outstanding shares of common stock of Reynolds Metals Company to 62,887,628
shares as reported in the Second Quarter 10-Q.
<PAGE>
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CUSIP NO. 761763 101 PAGE 6 OF 8 PAGES
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This Amendment No. 3 to Schedule 13D (this "Amendment No. 3") should be read in
conjunction with the Schedule 13D filed with the Securities and Exchange
Commission (the "Commission") on March 17, 1999 (the "Schedule 13D"), as amended
by Amendment No. 1 to the Schedule 13D filed with the Commission on June 23,
1999, and as further amended by Amendment No. 2 filed with the Commission on
August 12, 1999 by Highfields Capital Management LP, Highfields GP LLC, Jonathon
S. Jacobson and Richard L. Grubman relating to the shares of common stock, no
par value (the "Shares"), of Reynolds Metals Company (the "Company"). This
Amendment No. 3 amends and restates the Schedule 13D with respect to Item 7.
All other information in the Schedule 13D shall remain in effect. All
capitalized terms used herein and not otherwise defined shall have the meanings
ascribed thereto in the Schedule 13D.
This Amendment No. 3 is being filed to include as an exhibit to the
Schedule 13D the letter dated August 19, 1999 from Highfields Capital Management
to each of the directors of the Company.
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CUSIP NO. 761763 101 PAGE 7 OF 8 PAGES
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Item 7. Material to be Filed as Exhibits.
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Exhibit 99.1/1/- Letters from Highfields to the Company, dated
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February 16, 1999.
Exhibit 99.2/1/- Letter from the Company to Highfields, dated
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February 25, 1999.
Exhibit 99.3/1/- Letter from the Company to the Securities and
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Exchange Commission, dated March 1, 1999.
Exhibit 99.4/1/- Letter from Highfields to the Company, dated
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March 1, 1999.
Exhibit 99.5/1/- Letter from Highfields to the Company, dated
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March 5, 1999.
Exhibit 99.6/2/- Letter from Highfields to the Company, dated
------------
June 23, 1999.
Exhibit 99.7/3/- Form of letter from Highfields to the
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Directors of the Company, dated August 10, 1999.
Exhibit 99.8/3/- Letter from Highfields to Mr. William H. Joyce,
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Director of the Company, dated August 10, 1999.
Exhibit 99.9/3/- Letter from Highfields to the Directors of the
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Company, dated August 11, 1999.
Exhibit 99.10 - Letter from Highfields to the Board of Directors of
------------- the Company dated August 19, 1999.
/1/ Previously filed in Schedule 13D dated March 17, 1999
/2/ Previously filed in Amendment No. 1 to Schedule 13D, dated June 23, 1999.
/3/ Previously filed in Amendment No. 2 to Schedule 13D, dated August 12, 1999.
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CUSIP NO. 761763 101 PAGE 8 OF 8 PAGES
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SIGNATURES
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.
Dated: August 19, 1999 HIGHFIELDS CAPITAL MANAGEMENT LP
By: Highfields GP LLC, its General Partner
By: /s/ Kenneth H. Colburn
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Kenneth H. Colburn
Authorized Signatory
HIGHFIELDS GP LLC
By: /s/ Kenneth H. Colburn
--------------------------------------
Kenneth H. Colburn
Authorized Signatory
RICHARD L. GRUBMAN
/s/ Kenneth H. Colburn
--------------------------------------
Kenneth H. Colburn, Attorney-In-Fact
JONATHON S. JACOBSON
/s/ Kenneth H. Colburn
--------------------------------------
Kenneth H. Colburn
Attorney-In-Fact
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[HIGHFIELDS CAPITAL MANAGEMENT LP LETTERHEAD]
Exhibit 99.10
August 19, 1999
Board of Directors
Reynolds Metals Company
6601 West Broad Street
Richmond, VA 23261-7003
Ladies and Gentlemen:
The Board of Directors of Reynolds Metals has reached a new low in corporate
governance. Let me review some facts concerning your recent behavior as it
relates to the destruction of shareholder value:
- The company effectively lied to the shareholders by not disclosing
Alcoa's first written proposal in March. For months, we and other major
shareholders have been pushing the company to explore a sale. Jerry
Sheehan had consistently told us and others that there was no one
interested in buying the entire company, and if there was, they knew how
to contact him. In fact, there was, and contrary to all his previous
promises, he failed to immediately bring it to the attention of the
shareholders. By rejecting Alcoa's overture and pursuing his "merger of
equals", Jerry became the catalyst for the Alcan/Pechiney/Algroup merger
while squandering $2 billion of shareholder value. Alcoa's original
proposal of 1.42 shares clearly was attractive, dramatically more so
than the present offer, and probably negotiable.
- There never was a process to actively sell the company. After six
months of pressure from us and other shareholders, and only in the face
of a hostile offer and consent solicitation from Alcoa, did you as a
board finally utter the words "...explore...the sale of the company..."
Four days later you agreed to sell to Alcoa for no real increment over
their previous inadequate proposal. We know that certain large industry
and financial buyers of all or some of Reynolds were never solicited,
either before or after the above statement was made last Sunday evening.
No attempt was made by either of your bankers (including the one
retained three days ago) to share confidential information regarding
Reynolds to encourage them to make attractive offers. In short, you sold
us out without even trying to solicit higher bids. You have allowed
Alcoa to steal the company.
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- The results of your so-called process and resistance of the
shareholders' wishes over these many months has been a reduction in
Alcoa's offer from 1.42 to 1.06 shares. Jerry claims that if any other
buyer were interested, they would have made themselves known. Jerry's
opinion in this matter is irrelevant. Your job on behalf of
shareholders, which you have failed miserably in doing, was to ignore
Jerry's opinions, remove him from the process and aggressively market
Reynolds to prospective purchasers via your advisors. In the context of
Alcoa's recently disclosed offer, you had plenty of time to conduct such
a process and/or negotiate further with Alcoa.
- The offer you accepted from Alcoa today is worth less, on an options-
adjusted basis, than the offer they made on Sunday. Alcoa and their
advisors understand this, but apparently you do not. You effectively
made no effort to improve a highly inadequate deal for the Reynolds
shareholders and you got less than nothing for limiting your ability to
solicit other bidders to thirty days. Furthermore, other bidders may be
less inclined to break up an agreed deal with Alcoa. Had you conducted a
fair auction while Alcoa was soliciting consents, they would have been
forced to raise their bid to garner votes. It is hard, if not
impossible, to imagine how we would have done worse.
This letter only begins to express the outrage that Reynolds' shareholders
harbor directly towards you, the Reynolds Board. Your behavior is reprehensible
and even if another buyer surfaces at a higher price, you will forever be
remembered for your failure in this matter.
Finally, we do not think that the process is over. Reynolds' assets are too
valuable to not attract other bidders or groups of bidders willing to pay
significantly more than Alcoa while still getting a very attractive deal. Over
the next thirty days, Reynolds' shareholders expect you to fulfill your
fiduciary duty and actively solicit bids from other buyers.
Sincerely,
/s/ Richard Grubman
Richard Grubman
Managing Director