================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 4)
BURNHAM PACIFIC PROPERTIES, INC.
- --------------------------------------------------------------------------------
(Name of Issuer)
COMMON STOCK, $.01 PAR VALUE 12232C108
- --------------------------------------------------------------------------------
(Title of class of securities) (CUSIP number)
DAVID E. ZELTNER, ESQ.
WEIL, GOTSHAL & MANGES LLP
767 FIFTH AVENUE
NEW YORK, NEW YORK 10153
(212) 310-8000
- --------------------------------------------------------------------------------
(Name, address and telephone number of person
authorized to receive notices and communications)
February 8, 2000
- --------------------------------------------------------------------------------
(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 pages)
(Page 1 of 16 Pages)
================================================================================
NY2:\876083\02\$rzn02!.DOC\72825.0006
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------- ---------------------------------------- -------------------------------------------------
CUSIP No. 12232C108 13D Page 2 of 16
- ---------------------------- ---------------------------------------- -------------------------------------------------
- ------------------- ------------------------------------------------- --------------------------------------------------------------
<S> <C>
1 NAMES OF REPORTING PERSONS: JUBILEE LIMITED PARTNERSHIP
I.R.S. IDENTIFICATION NOS. 31-1382356
OF ABOVE PERSONS:
- ------------------- ----------------------------------------------------------------------------------------- ----------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (A) [X]
(B) [_]
- ------------------- ----------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------- ------------------------------ ---------------------------------------------------------------------------------
4 SOURCE OF FUNDS: BK
- ------------------- ----------------------------------------------------------------------------------------- ----------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [_]
- ------------------- ------------------------------------------------- --------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: OHIO
- ---------------------------- ------- --------------------------------------------- -------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 1,386,000
SHARES
------- --------------------------------------------- -------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
------- --------------------------------------------- -------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 1,386,000
REPORTING
------- --------------------------------------------- -------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- ------------------- -------------------------------------------------------------- -------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON: 1,386,000
- ------------------- ----------------------------------------------------------------------------------------- ----------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [_]
- ------------------- ----------------------------------------------------------------------------------------- ----------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 4.3%
- ------------------- ------------------------------------------------- --------------------------------------------------------------
14 TYPE OF REPORTING PERSON: PN
- ------------------- ------------------------------------------------- --------------------------------------------------------------
<PAGE>
- ---------------------------- ---------------------------------------- -------------------------------------------------
CUSIP No. 12232C108 13D Page 3 of 16
- ---------------------------- ---------------------------------------- -------------------------------------------------
- ------------------- ------------------------------------------------- --------------------------------------------------------------
1 NAMES OF REPORTING PERSONS: JUBILEE LIMITED PARTNERSHIP III
I.R.S. IDENTIFICATION NOS. 31-1487226
OF ABOVE PERSONS:
- ------------------- ----------------------------------------------------------------------------------------- ----------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (A) [X]
(B) [_]
- ------------------- ----------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------- ------------------------------ ---------------------------------------------------------------------------------
4 SOURCE OF FUNDS: BK
- ------------------- ----------------------------------------------------------------------------------------- ----------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [_]
- ------------------- ------------------------------------------------- --------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: OHIO
- ---------------------------- ------- --------------------------------------------- -------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 1,219,800
SHARES
------- --------------------------------------------- -------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
------- --------------------------------------------- -------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 1,219,800
REPORTING
------- --------------------------------------------- -------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- ------------------- -------------------------------------------------------------- -------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON: 1,219,800
- ------------------- ----------------------------------------------------------------------------------------- ----------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [_]
- ------------------- ----------------------------------------------------------------------------------------- ----------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 3.8%
- ------------------- ------------------------------------------------- --------------------------------------------------------------
14 TYPE OF REPORTING PERSON: PN
- ------------------- ------------------------------------------------- --------------------------------------------------------------
<PAGE>
- ---------------------------- ---------------------------------------- -------------------------------------------------
CUSIP No. 12232C108 13D Page 4 of 16
- ---------------------------- ---------------------------------------- -------------------------------------------------
- ------------------- ------------------------------------------------- --------------------------------------------------------------
1 NAMES OF REPORTING PERSONS: SCHOTTENSTEIN PROFESSIONAL ASSET MANAGEMENT CORP.
I.R.S. IDENTIFICATION NOS. 31-1289300
OF ABOVE PERSONS:
- ------------------- ----------------------------------------------------------------------------------------- ----------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (A) [X]
(B) [_]
- ------------------- ----------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------- ------------------------------ ---------------------------------------------------------------------------------
4 SOURCE OF FUNDS: NOT APPLICABLE
- ------------------- ----------------------------------------------------------------------------------------- ----------------------
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: 2,605,800
OWNED BY
------- --------------------------------------------- -------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------- --------------------------------------------- -------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 2,605,800
- ------------------- -------------------------------------------------------------- -------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON: 2,605,800
- ------------------- ----------------------------------------------------------------------------------------- ----------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [_]
- ------------------- ----------------------------------------------------------------------------------------- ----------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 8.1%
- ------------------- ------------------------------------------------- --------------------------------------------------------------
14 TYPE OF REPORTING PERSON: CO
- ------------------- ------------------------------------------------- --------------------------------------------------------------
<PAGE>
- ---------------------------- ---------------------------------------- -------------------------------------------------
CUSIP No. 12232C108 13D Page 5 of 16
- ---------------------------- ---------------------------------------- -------------------------------------------------
- ------------------- ------------------------------------------------- --------------------------------------------------------------
1 NAMES OF REPORTING PERSONS: JAY L. SCHOTTENSTEIN
I.R.S. IDENTIFICATION NOS. ###-##-####
OF ABOVE PERSONS:
- ------------------- ----------------------------------------------------------------------------------------- ----------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (A) [X]
(B) [_]
- ------------------- ----------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------- ------------------------------ ---------------------------------------------------------------------------------
4 SOURCE OF FUNDS: NOT APPLICABLE
- ------------------- ----------------------------------------------------------------------------------------- ----------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [_]
- ------------------- ------------------------------------------------- --------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: USA
- ---------------------------- ------- --------------------------------------------- -------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES
------- --------------------------------------------- -------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 3,036,600
OWNED BY
------- --------------------------------------------- -------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------- --------------------------------------------- -------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 3,036,600
- ------------------- -------------------------------------------------------------- -------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON: 3,036,600
- ------------------- ----------------------------------------------------------------------------------------- ----------------------
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
- ------------------- ------------------------------------------------- --------------------------------------------------------------
<PAGE>
- ---------------------------- ---------------------------------------- -------------------------------------------------
CUSIP No. 12232C108 13D Page 6 of 16
- ---------------------------- ---------------------------------------- -------------------------------------------------
- ------------------- ------------------------------------------------- --------------------------------------------------------------
1 NAMES OF REPORTING PERSONS: SCHOTTENSTEIN STORES CORPORATION
I.R.S. IDENTIFICATION NOS. 31-0820773
OF ABOVE PERSONS:
- ------------------- ----------------------------------------------------------------------------------------- ----------------------
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 PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [_]
- ------------------- ------------------------------------------------- --------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: DELAWARE
- ---------------------------- ------- --------------------------------------------- -------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 430,800
SHARES
------- --------------------------------------------- -------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
------- --------------------------------------------- -------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 430,800
REPORTING
------- --------------------------------------------- -------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- ------------------- -------------------------------------------------------------- -------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON: 430,800
- ------------------- ----------------------------------------------------------------------------------------- ----------------------
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: CO
- ------------------- ------------------------------------------------- --------------------------------------------------------------
</TABLE>
<PAGE>
This Amendment No. 4 ("Amendment No. 4") amends and supplements the
Statement on Schedule 13D (the "Schedule 13D"), filed on June 7, 1999, as
amended by Amendment No. 1 filed on June 16, 1999, Amendment No. 2 filed on July
12, 1999 and Amendment No. 3 filed on February 1, 2000, by Jubilee Limited
Partnership ("JLP"), Jubilee Limited Partnership III ("JLPIII"), Schottenstein
Professional Asset Management Corp. ("SPAMC"), Jay L. Schottenstein ("JS") and
Schottenstein Stores Corporation ("SSC"). JLP, JLPIII, SPAMC, JS and SSC (each a
"Reporting Person") constitute a "group" for purposes of Rule 13d-5 under the
Securities Exchange Act of 1934, as amended, with respect to their respective
beneficial ownership of the Shares (as defined below) and are collectively
referred to as the "Schottenstein Group." Capitalized terms used herein and not
defined herein have the meanings ascribed thereto in the Schedule 13D.
Information contained herein with respect to each Reporting Person is given
solely by such Reporting Person, and no other member of the Schottenstein Group
has responsibility for the accuracy or completeness of information supplied by
such Reporting Person.
ITEM 1. SECURITY AND ISSUER.
This Amendment No. 4 relates to shares of common stock, $.01 par
value (the "Shares"), of Burnham Pacific Properties, Inc., a Maryland
corporation (the "Company"). The principal executive offices of the Company are
located at 610 West Ash Street, San Diego, CA 92101.
ITEM 4. PURPOSE OF TRANSACTION.
The information set forth in Item 4 of the Schedule 13D is hereby
amended and supplemented by the following:
In response to the Schottenstein Group's filing of Amendment No. 3 on
February 1, 2000, the Schottenstein Group received a letter from the Company
dated February 3, 2000, a copy of which is attached hereto as Exhibit 6 and is
incorporated herein by reference. The Schottenstein Group responded to such
letter by delivering a letter to the Company dated February 7, 2000, a copy of
which is attached hereto as Exhibit 7 and is incorporated hereby by reference.
(7 of 16)
<PAGE>
Except as set forth above and in the Schedule 13D, none of the
Reporting Persons has any plans or proposals which relate to or would result in
any of the actions set forth in parts (a) through (j) of Item 4.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
The following is filed herewith as an exhibit to this Amendment
No. 4.
Exhibit 6. Letter from Burnham Pacific Properties, Inc. to Mr. Jay
Schottenstein dated February 3, 2000
Exhibit 7. Letter from the Schottenstein Group to Burnham Pacific
Properties, Inc. dated February 7, 2000
(8 of 16)
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief,
the undersigned certifies that the information set forth in this statement is
true, complete and correct.
Dated: February 8, 2000
JUBILEE LIMITED PARTNERSHIP
By: SCHOTTENSTEIN PROFESSIONAL ASSET MANAGEMENT
CORP., as sole general partner
By: /s/ Jay L. Schottenstein
------------------------------------------
Name: Jay L. Schottenstein
Title: President & Chairman
JUBILEE LIMITED PARTNERSHIP III
By: SCHOTTENSTEIN PROFESSIONAL ASSET MANAGEMENT
CORP., as sole general partner
By: /s/ Jay L. Schottenstein
------------------------------------------
Name: Jay L. Schottenstein
Title: President & Chairman
SCHOTTENSTEIN STORES CORPORATION
By: /s/ Jay L. Schottenstein
-----------------------------------------------
Name: Jay L. Schottenstein
Title: Chairman & Chief Executive Officer
/s/ Jay L. Schottenstein
-----------------------------------------------
JAY L. SCHOTTENSTEIN
(9 of 16)
<PAGE>
Exhibit Index
-------------
Exhibit Page
- ------- ----
6. Letter from Burnham Pacific Properties, Inc. to Mr. Jay
Schottenstein dated February 3, 2000 11
7. Letter from the Schottenstein Group to Burnham Pacific
Properties, Inc. dated February 7, 2000 14
(10 of 16)
EXHIBIT 6
[Letterhead of Burnham Pacific Properties, Inc.]
February 3, 2000
Mr. Jay Schottenstein
Chairman and Chief Executive Officer
Schottenstein Stores Corporation
1800 Moler Road
Columbus, OH 43207
Dear Mr. Schottenstein:
On behalf of Burnham Pacific Properties, Inc. (the
"Company"), I am writing to inform you that we have reviewed your February 1,
2000 filing of a Schedule 13D/A with the SEC and believe it is necessary to make
the following corrections and clarifications.
As previously announced, the Company's Board of Directors
has instructed management and Goldman, Sachs & Co. to actively pursue a full
range of strategic alternatives. Upon this announcement, our representatives
promptly contacted your representatives to invite you to participate in the
process we have established to pursue those alternatives. In order to maximize
the chances of realizing successful results, the Company and its advisors are
following the customary process of asking all parties that are interested in
pursuing a transaction with the Company to sign confidentiality agreements
containing "standstill" provisions. The primary reasons for including standstill
provisions in this context are to maximize the competition among potential
bidders and thereby maximize the value of the bids. In addition, standstill
provisions foster an orderly marketing and bidding process, which should serve
as an inducement for a greater number of potential bidders to submit bids and to
make their best offers within the timetable established by the Company.
(11 of 16)
<PAGE>
Implicit in the importance of conducting an orderly process
is that the Company must attempt to maintain a level playing field when seeking
bids from more than one bidder. Otherwise, potential bidders may be deterred
from participating if other parties are able to participate on more favorable
terms.
There would be little incentive for a potential bidder to
spend its time, money and resources conducting due diligence and evaluating the
Company if it would be possible for another party that has access to the same
confidential information to engage at any time in certain acts that would
significantly reduce the probability that the former bidder's efforts would be
successful.
As evidence that standstill provisions are customary in
this context, you should know that numerous other potential bidders have
executed confidentiality agreements with the Company and that all of them
contain substantially similar standstill provisions. Moreover, based upon the
fact that very little negotiation took place regarding these standstill
provisions, it is difficult to agree with your contention that these provisions
might result in a process that is not fair or equitable.
Despite the fact that the other potential bidders executed
substantially the same confidentiality agreements, you requested more favorable
provisions when your representatives negotiated the confidentiality agreement
with our counsel. Because we want you to participate in the bidding process, as
we have repeatedly told your representatives, we agreed to several concessions
that you requested and were making progress on reaching compromises on other
changes that you wanted. However, approximately two weeks ago your
representatives abruptly notified us that you wanted to review certain documents
that had just been filed with the SEC by others and that you wanted to
reconsider what actions you would take with respect to the Company. Your
representatives subsequently informed us that you were no longer interested in
becoming part of the bidding process with the other potential bidders as a
result of those filings.
Finally, your filing incorrectly states, among other
things, that the Company and its advisors have refused to meet with you and
discuss your proposals. As you know, our representatives have in fact had many
discussions with your representatives, and our representatives remain willing to
(12 of 16)
<PAGE>
discuss any proposal that you may submit. We continue to encourage you to submit
a proposal, and we will provide you under separate cover the bidding
instructions we have provided to others. Please let us or our representatives
know how else we can assist you other than by providing you with non-public
information without an appropriate confidentiality agreement.
Sincerely,
/s/ Scott C. Verges
Scott C. Verges
Secretary and General Counsel
cc: J. Philip Rosen, Esq.
Weil, Gotshal & Manges LLP
Stephen W. Carr, P.C.
Goodwin, Procter & Hoar LLP
(13 of 16)
EXHIBIT 7
[LETTERHEAD OF WEIL, GOTSHAL & MANGES LLP]
February 8, 2000
Scott C. Verges, Esq.
Secretary and General Counsel
Burnham Pacific Properties, Inc.
100 Bush Street, 24th Flr.
San Francisco, CA 94104
Dear Mr. Verges:
On behalf of Schottenstein Stores Corporation, Jubilee
Limited Partnership, Jubilee Limited Partnership III, Schottenstein Professional
Asset Management Corp. and Jay L. Schottenstein (collectively, the
"Schottenstein Group"), I am responding to your letter to Jay Schottenstein of
February 3, 2000, with respect to Amendment No. 3 to the Schedule 13D of the
Schottenstein Group filed with the Securities and Exchange Commission on
February 1, 2000.
Your letter seeks to characterize the Schottenstein Group
as unreasonable for refusing to sign a "confidentiality agreement" that has more
to do with restricting the Schottenstein Group's rights as shareholders than
protecting confidential information. In addition to asking potential bidders to
protect the confidentiality of proprietary or other non-public information of
Burnham Pacific Properties, Inc. (the "Company"), the Company has insisted upon
"standstill provisions" limiting their ability to make acquisition proposals and
exercise their rights as shareholders to propose nominees for directors or make
other proposals.
You cite the fact that other potential bidders have agreed
to such restrictions as evidence that standstill provisions are "customary in
this context." Execution by a non-shareholder of a confidentiality agreement
containing "standstill provisions" is not at all "evidence" that such provisions
are "customary" in such context. As a holder of approximately 9.4% of the
Company's common stocks, the Schottenstein Group believes that it remains in a
unique position among the potential bidders. Unlike other third parties with no
economic interest in the Company, the Schottenstein Group cannot waive its
(14 of 16)
<PAGE>
rights as a shareholder and allow management to entrench itself indefinitely.
The uniqueness of our client's position is further reflected in the fact that
the Schottenstein Group first proposed to acquire the Company in June 1999
(which bid was flatly rejected by the Company) and, since that time, the Company
refused our numerous requests to conduct due diligence with a view toward an
acquisition transaction. The Schottenstein Group believes its acquisition
proposals were not welcomed by the Company's Board of Directors or management
and it has reasonably become concerned that it will not be treated in a fair and
equitable fashion in any bidding process. This concern was heightened by the
fact that representatives of the Company flatly refused to insert language into
the confidentiality agreement that would assure the Schottenstein Group fair and
equitable treatment in any sale process.
Your letter suggests that the Schottenstein Group was no
longer interested in participating in the Company's bidding process because of
certain documents filed with the SEC. Reference to "documents filed with the
SEC" presumably refers to the Schedule 13D filed by Westbrook Real Estate
Partners, L.L.C. and its affiliates ("Westbrook") on January 13, 2000 (the
"Westbrook Filing"). The Westbrook Filing indicated that Westbrook was
considering alternative courses of action in view of the facts, among others,
that the Schottenstein Group's proposals to acquire the Company were not pursued
by the Company, that the Company adopted a "poison pill" shareholder rights plan
and various executive severance plans, that the Company allegedly failed to
honor Westbrook's rights to observe Board of Director and committee meetings and
refused to amend the "poison pill" to allow Westbrook to purchase additional
shares. In the Westbrook Filing, Westbrook also stated that, in view of the
foregoing, Westbrook has become increasingly concerned that the Company "may not
actively pursue [its] strategic alternatives, and that the [Company] may not
conduct an open, transparent and fair process for the maximization of
shareholder value to the extent it does pursue such strategic alternatives."
The Schottenstein Group shares Westbrook's concerns. As
indicated above, because of such concerns, the Schottenstein Group requested the
Company's assurance that it receive "fair and equitable" treatment in any
(15 of 16)
<PAGE>
bidding process. The Company's refusal to provide such assurance heightened such
concerns and the Schottenstein Group believes that negotiations with the Company
concerning the so-called "confidentiality agreement" broke down over this issue.
The Schottenstein Group remains willing and eager to
participate in the Company's bidding process and hereby demands a meeting with
the Company's Board of Directors to resolve this matter as soon as possible.
Sincerely yours,
/s/ J. Philip Rosen
J. Philip Rosen
cc: Jay L. Schottenstein
(16 of 16)
