SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
AMENDMENT NO. 1 (FINAL) TO SCHEDULE 13D
Under the Securities Exchange Act of 1934
Toy Biz, Inc.
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(Name of Issuer)
Class A Common Stock, $.01 par value
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(Title of Class of Securities)
892261108
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(CUSIP Number)
Alan S. Cooper
Dickstein Partners Inc.
660 Madison Avenue, 16th Floor
New York, New York 10021
(212) 754-4000
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(Name, Address and Telephone Number of
Person Authorized to Receive Notices
and Communications)
October 14, 1997
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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: [ ]
Page 1 of 14 pages
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SCHEDULE 13D
CUSIP No. 892261108 Page 2 of 14 Pages
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1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
DICKSTEIN & CO., L.P. 13-3321472
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2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) SEE ITEM 5
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3) SEC USE ONLY
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4) SOURCE OF FUNDS
WC
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5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
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6) CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
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7) SOLE VOTING POWER
Not Applicable
NUMBER
OF 8) SHARED VOTING POWER
SHARES 839,900 (See Item 5)
BENEFICIALLY
OWNED BY 9) SOLE DISPOSITIVE POWER
EACH Not Applicable
REPORTING
PERSON 10) SHARED DISPOSITIVE POWER
WITH 839,900 (See Item 5)
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11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON 839,900 (See Item 5)
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12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
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13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.0% (See Item 5)
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14) TYPE OF REPORTING PERSON
PN
<PAGE>
SCHEDULE 13D
CUSIP No. 892261108 Page 3 of 14 Pages
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1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
DICKSTEIN FOCUS FUND L.P. 13-3746015
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2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) SEE ITEM 5
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3) SEC USE ONLY
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4) SOURCE OF FUNDS
WC
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5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
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6) CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
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7) SOLE VOTING POWER
Not Applicable
NUMBER
OF 8) SHARED VOTING POWER
SHARES 192,300 (See Item 5)
BENEFICIALLY
OWNED BY 9) SOLE DISPOSITIVE POWER
EACH Not Applicable
REPORTING
PERSON 10) SHARED DISPOSITIVE POWER
WITH 192,300 (See Item 5)
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11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON 192,300 (See Item 5)
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12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
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13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
.7% (See Item 5)
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14) TYPE OF REPORTING PERSON
PN
<PAGE>
SCHEDULE 13D
CUSIP No. 892261108 Page 4 of 14 Pages
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1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
DICKSTEIN INTERNATIONAL LIMITED
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2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) SEE ITEM 5
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3) SEC USE ONLY
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4) SOURCE OF FUNDS
WC
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5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
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6) CITIZENSHIP OR PLACE OF ORGANIZATION
BRITISH VIRGIN ISLANDS
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7) SOLE VOTING POWER
Not Applicable
NUMBER
OF 8) SHARED VOTING POWER
SHARES 150,400 (See Item 5)
BENEFICIALLY
OWNED BY 9) SOLE DISPOSITIVE POWER
EACH Not Applicable
REPORTING
PERSON 10) SHARED DISPOSITIVE POWER
WITH 150,400 (See Item 5)
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11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON 150,400 (See Item 5)
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12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
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13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
.5% (See Item 5)
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14) TYPE OF REPORTING PERSON
CO
<PAGE>
SCHEDULE 13D
CUSIP No. 892261108 Page 5 of 14 Pages
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1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
DICKSTEIN PARTNERS, L.P. 13-3544838
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2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) SEE ITEM 5
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3) SEC USE ONLY
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4) SOURCE OF FUNDS
AF
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5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
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6) CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
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7) SOLE VOTING POWER
Not Applicable
NUMBER
OF 8) SHARED VOTING POWER
SHARES 1,032,200 (See Item 5)
BENEFICIALLY
OWNED BY 9) SOLE DISPOSITIVE POWER
EACH Not Applicable
REPORTING
PERSON 10) SHARED DISPOSITIVE POWER
WITH 1,032,200 (See Item 5)
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11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON 1,032,200 (See Item 5)
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12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
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13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.7% (See Item 5)
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14) TYPE OF REPORTING PERSON
PN
<PAGE>
SCHEDULE 13D
CUSIP No. 892261108 Page 6 of 14 Pages
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1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
DICKSTEIN PARTNERS INC. 13-3537972
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2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) SEE ITEM 5
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3) SEC USE ONLY
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4) SOURCE OF FUNDS
AF
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5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
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6) CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
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7) SOLE VOTING POWER
Not Applicable
NUMBER
OF 8) SHARED VOTING POWER
SHARES 1,182,600 (See Item 5)
BENEFICIALLY
OWNED BY 9) SOLE DISPOSITIVE POWER
EACH Not Applicable
REPORTING
PERSON 10) SHARED DISPOSITIVE POWER
WITH 1,182,600 (See Item 5)
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11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON 1,182,600 (See Item 5)
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12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
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13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.3% (See Item 5)
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14) TYPE OF REPORTING PERSON
CO
<PAGE>
SCHEDULE 13D
CUSIP No. 892261108 Page 7 of 14 Pages
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1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
MARK DICKSTEIN
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2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) SEE ITEM 5
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3) SEC USE ONLY
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4) SOURCE OF FUNDS
AF
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5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
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6) CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
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7) SOLE VOTING POWER
Not Applicable
NUMBER
OF 8) SHARED VOTING POWER
SHARES 1,182,600 (See Item 5)
BENEFICIALLY
OWNED BY 9) SOLE DISPOSITIVE POWER
EACH Not Applicable
REPORTING
PERSON 10) SHARED DISPOSITIVE POWER
WITH 1,182,600 (See Item 5)
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11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON 1,182,600 (See Item 5)
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12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
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13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.3% (See Item 5)
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14) TYPE OF REPORTING PERSON
IN
<PAGE>
Amendment No. 1 to
Schedule 13D (Final)
This Statement amends the Schedule 13D, dated August 8, 1997 (the
"Schedule 13D")filed by Dickstein & Co., L.P. ("Dickstein & Co."), Dickstein
Focus Fund L.P. ("Dickstein Focus"), Dickstein International Limited ("Dickstein
International"), Dickstein Partners, L.P. ("Dickstein Partners"), Dickstein
Partners Inc. ("Dickstein Inc.") and Mark Dickstein with respect to the Class A
Common Stock, $.01 par value (the "Common Stock"), of Toy Biz, Inc., a Delaware
corporation, (the "Company"). Notwithstanding this Amendment No. 1, the Schedule
13D speaks as of its date. Capitalized terms used without definition have the
meanings ascribed to them in the Schedule 13D.
I. Item 3 of the Schedule 13D "SOURCE AND AMOUNT OF FUNDS OR OTHER
CONSIDERATION," is amended and restated as follows:
"The shares of Common Stock reported to be owned by Dickstein & Co.,
Dickstein Focus and Dickstein International were acquired in the open market.
Giving effect to certain sales of the Common Stock made by each such entity, the
total cost of the reported shares by Dickstein & Co., Dickstein Focus and
Dickstein International was $11,702,297, $2,547,103 and $2,068,027,
respectively. Such costs were funded out of working capital, which may, at any
given time, include margin loans made by brokerage firms in the ordinary course
of business."
II. Item 4 of the Schedule 13D, "PURPOSE OF THE TRANSACTION," is amended by
adding the following paragraph to the end of such item:
"Certain of the Reporting Persons are the holders of certain senior
secured indebtedness (the "Marvel Senior Debt") of Marvel Entertainment Group,
Inc. ("Marvel"), a Delaware corporation that has filed for protection under
Chapter 11 of the United States Bankruptcy Code. On October 14, 1997, Dickstein
& Co., together with certain other holders of the Marvel Senior Debt (all
holders of Marvel Senior Debt being referred to as the "Marvel Senior Debt
Holders"), became parties to an agreement with the Company (the "Master
Agreement"). Pursuant to the Master Agreement, among other things, Dickstein &
Co. has agreed to support, in the manner provided in the Master Agreement, the
plan previously proposed by the Company for the combination of the businesses of
Marvel and the Company (the "Proposed Plan"). Under the Proposed Plan, among
other things, (i) holders of the Marvel Senior Debt would receive cash and
common and convertible preferred equity securities to be issued by the entity
resulting from the combination of Marvel and the Company (the "Combined
Company"), and (ii) holders of Common Stock would receive one
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<PAGE>
share of common stock of the Combined Company for each share of Common Stock.
The Proposed Plan is subject to numerous conditions, including approval by the
bankruptcy court in the Marvel bankruptcy proceedings. The Master Agreement may
be terminated, among other things, by either the Company or a majority of the
Marvel Senior Debt Holders who are parties to the Master Agreement if the
holders of 66 2/3% of the Marvel Senior Debt constituting a majority in number
of the Marvel Senior Debt Holders (excluding certain of such holders) have not
become parties to the Master Agreement by the close of business on November 14,
1997. A copy of the Master Agreement is incorporated by reference as an exhibit
hereto, and the foregoing description of the Master Agreement is qualified in
its entirety by reference to such exhibit.
Stockholders of the Company holding an aggregate of 13,656,000 shares
of Common Stock, or approximately 49% of the outstanding shares of Common Stock,
have entered into agreements with the Marvel Senior Debt Holders who executed
the Master Agreement, including Dickstein & Co. (the "Proxy and Stock Option
Agreements"), pursuant to which they have agreed to support the Proposed Plan.
Among other things, the Proxy and Stock Option Agreements give to an agent for
those Marvel Senior Debt Holders who are parties to the Proxy and Stock Option
Agreements an irrevocable proxy to vote the stockholders' shares of Common Stock
in favor of the Proposed Plan. Also, the Proxy and Stock Option Agreements give
those same Marvel Senior Debt Holders options to purchase the stockholders'
shares of Common Stock at an exercise price of $4.00 per share, which options
become exercisable in the event that the stockholders breach their obligations
under the respective Proxy and Stock Option Agreements or the Company breaches
the Master Agreement. The Proxy and Stock Option Agreements have termination
provisions similar to the termination provisions of the Master Agreement. Copies
of the Proxy and Stock Option Agreements are incorporated by reference as
exhibits hereto, and the foregoing description of the Proxy and Stock Option
Agreements is qualified in its entirety by reference to such exhibits.
It is contemplated that the cash payments to be made to the Marvel
Senior Debt Holders under the Proposed Plan would be funded, in part, by the
issuance of convertible preferred stock by the Combined Company. Representatives
of the Reporting Persons have had preliminary discussions with the Company
concerning the purchase of a portion of such preferred stock."
III. Items 5(a), 5(c) and 5(e) of the Schedule 13D, "Interest in Securities of
the Issuer," are amended and restated as follows:
"(a) The Reporting Persons beneficially own an aggregate of 1,182,600
shares of Common Stock, representing approximately 4.3% of the Common Stock
outstanding. Dickstein & Co. owns 839,900 of such shares, representing
approximately
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<PAGE>
3.0% of the Common Stock outstanding, Dickstein Focus owns 192,300 of such
shares, representing approximately .7% of the Common Stock outstanding and
Dickstein International owns 150,400 of such shares, representing approximately
.5% of the Common Stock outstanding.1
(c) Except for the transactions set forth on Schedule II annexed hereto
and Schedule II to the Schedule 13D, none of the persons identified in Item 2
has effected any transactions in the Common Stock during the past 60 days. All
such transactions were effected in the open market.
(e) The Quarterly Report reflects the reclassification of the Company's
Class B Common Stock into Common Stock. Based upon the number of outstanding
shares of Common Stock reported in the Quarterly Report, the Reporting Persons
have ceased to be the beneficial owner of more than 5% of the outstanding Common
Stock. Accordingly, the Reporting Persons no longer have a reporting obligation
under Section 13(d) of the Exchange Act with respect to the Common Stock and the
Reporting Persons intend not to further amended their report on Schedule 13D to
reflect changes in the facts set forth herein which may occur after the date
hereof."
IV. Item 6 of the Schedule 13D "CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR
RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER" is amended and restated
as follows:
"On October 14, 1997, Dickstein & Co. became a party to the Master
Agreement and the Proxy and Stock Option Agreements. See Item 4."
V. Item 7 of the Schedule 13D "EXHIBITS" is amended by adding the following
exhibits:
EXHIBIT 2: Master Agreement, dated as of October 7, 1997, by
and among Toy Biz, Inc., and the secured creditors
of Marvel Entertainment Group, Inc. parties
thereto [incorporated by reference to Exhibit 2.1
to the Current Report on Form 8-K of the Company,
dated October 16, 1997]
EXHIBIT 3: Proxy and Stock Option Agreement, dated as of
October 7, 1997, by and among Isaac Perlmutter,
Isaac Perlmutter T.A. and Zib Inc. and the secured
creditors of Marvel
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1 Percentages are based upon 27,746,127 shares of Common Stock reported
outstanding as of August 1, 1997 in the Company's Quarterly Report on
Form 10-Q for the quarter ended June 30, 1997 (the "Quarterly Report").
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<PAGE>
Entertainment Group, Inc. parties thereto
[incorporated by reference to Exhibit 10.1 to the
Current Report on Form 8-K of the Company, dated
October 16, 1997]
EXHIBIT 4: Proxy and Stock Option Agreement, dated as of
October 7, 1997, by and among Avi Arad and the
secured creditors of Marvel Entertainment Group,
Inc. parties thereto [incorporated by reference to
Exhibit 10.2 to the Current Report on Form 8-K of
the Company, dated October 16, 1997]
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<PAGE>
SIGNATURE
After reasonable inquiry and to the best knowledge and belief of the
undersigned, the undersigned certifies that the information set forth in this
Statement is true, complete and correct.
Date: October 16, 1997
DICKSTEIN & CO., L.P.
By: Alan Cooper, as Vice President
of Dickstein Partners Inc.,
the general partner of
Dickstein Partners, L.P., the
general partner of Dickstein &
Co., L.P.
/s/ Alan Cooper
---------------------------------------
Name: Alan Cooper
DICKSTEIN FOCUS FUND L.P.
By: Alan Cooper, as Vice President
of Dickstein Partners Inc.,
the general partner of
Dickstein Partners, L.P., the
general partner of Dickstein
Focus Fund L.P.
/s/ Alan Cooper
---------------------------------------
Name: Alan Cooper
DICKSTEIN INTERNATIONAL LIMITED
By: Alan Cooper, as Vice President
of Dickstein Partners Inc.,
the agent of Dickstein
International Limited
/s/ Alan Cooper
---------------------------------------
Name: Alan Cooper
DICKSTEIN PARTNERS, L.P.
By: Alan Cooper, as Vice President
of Dickstein Partners Inc.,
the general partner of
Dickstein Partners, L.P.
/s/ Alan Cooper
---------------------------------------
Name: Alan Cooper
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<PAGE>
DICKSTEIN PARTNERS INC.
By: Alan Cooper, as Vice President
/s/ Alan Cooper
---------------------------------------
Name: Alan Cooper
/s/ Mark Dickstein
---------------------------------------
Mark Dickstein
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<PAGE>
SCHEDULE I
TRANSACTIONS IN COMMON
STOCK OF TOY BIZ, INC.
Shares Purchased by Dickstein & Co., L.P.
Number of
Shares Price per Total
Date Purchased share Commission Cost
- ---- --------- ----- ---------- ----
8/19/97 14,500 10.014 885.00 146,088.00
8/21/97 5,000 9.625 315.00 48,440.00
9/4/97 3,100 8.796 201.00 27,468.60
Shares Sold by Dickstein & Co., L.P.
Number of
Shares Price per Total
Date Sold share Commission Proceeds
- ---- ---- ----- ---------- --------
8/29/97 1,000 9.3750 75.32 9,299.68
Shares Purchased by Dickstein International Limited
Number of
Shares Price per Total
Date Purchased share Commission Cost
- ---- --------- ----- ---------- ----
8/19/97 10,200 10.014 627.00 102,769.80
8/21/97 900 9.625 69.00 8,731.50
Shares Purchased by Dickstein Focus Fund L.P.
Number of
Shares Price per Total
Date Purchased share Commission Cost
- ---- --------- ----- ---------- ----
8/19/97 27,600 10.014 1,671.00 278,057.40
8/21/97 1,100 9.625 81.00 10,668.50
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