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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No. 1)
Digital Generation Systems, Inc.
(Name of Issuer)
Common Stock
(Title of Class of Securities)
125708107
(CUSIP Number)
December 31, 1998
(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this
Schedule is filed:
/___/ Rule 13d-1(b)
/ X / Rule 13d-1(c)
/___/ Rule 13d-1(d)
* 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 ("Act") or otherwise subject to the liabilities of
that section of the Act but shall be subject to all other provisions of the
Act (however, see the Notes).
Potential persons who are to respond to the collection of information
contained in this form are not required to respond unless the form displays
a currently valid OMB control number.
SEC 1745 (3-98) Page 1 of 13
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CUSIP No. 125708107 13G Page 2 of 13 Pages
- -----------------------------------------------------------------
1 NAME OF REPORTING PERSON
IRS IDENTIFICATION NO. OF ABOVE PERSON
London Merchant Securities plc
- -----------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a)/X/
(b)/ /
- -----------------------------------------------------------------
3 SEC USE ONLY
- -----------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
United Kingdom
- -----------------------------------------------------------------
NUMBER OF 5 SOLE VOTING POWER
SHARES 0
BENEFICIALLY ----------------------------------------
OWNED BY 6 SHARED VOTING POWER
EACH 1,783,105
REPORTING ----------------------------------------
PERSON 7 SOLE DISPOSITIVE POWER
WITH 0
----------------------------------------
8 SHARED DISPOSITIVE POWER
1,783,105
- -----------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,783,105
- -----------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
CERTAIN SHARES*
- -----------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
6.8
- -----------------------------------------------------------------
12 TYPE OF REPORTING PERSON
00
- -----------------------------------------------------------------
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CUSIP No. 125708107 13G Page 3 of 13 Pages
- -----------------------------------------------------------------
1 NAME OF REPORTING PERSON
IRS IDENTIFICATION NO. OF ABOVE PERSON
Lion Investments Limited
- -----------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a)/X/
(b)/ /
- -----------------------------------------------------------------
3 SEC USE ONLY
- -----------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
United Kingdom
- -----------------------------------------------------------------
NUMBER OF 5 SOLE VOTING POWER
SHARES 560,824
BENEFICIALLY ----------------------------------------
OWNED BY 6 SHARED VOTING POWER
EACH 0
REPORTING ----------------------------------------
PERSON 7 SOLE DISPOSITIVE POWER
WITH 560,824
----------------------------------------
8 SHARED DISPOSITIVE POWER
0
- -----------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
560,824
- -----------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
CERTAIN SHARES*
- -----------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
2.1
- -----------------------------------------------------------------
12 TYPE OF REPORTING PERSON
00
- -----------------------------------------------------------------
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CUSIP No. 125708107 13G Page 4 of 13 Pages
- -----------------------------------------------------------------
1 NAME OF REPORTING PERSON
IRS IDENTIFICATION NO. OF ABOVE PERSON
Westpool Investment Trust plc
- -----------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a)/X/
(b)/ /
- -----------------------------------------------------------------
3 SEC USE ONLY
- -----------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
United Kingdom
- -----------------------------------------------------------------
NUMBER OF 5 SOLE VOTING POWER
SHARES 1,222,281
BENEFICIALLY ----------------------------------------
OWNED BY 6 SHARED VOTING POWER
EACH 0
REPORTING ----------------------------------------
PERSON 7 SOLE DISPOSITIVE POWER
WITH 1,222,281
----------------------------------------
8 SHARED DISPOSITIVE POWER
0
- -----------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,222,281
- -----------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
CERTAIN SHARES*
- -----------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
4.7
- -----------------------------------------------------------------
12 TYPE OF REPORTING PERSON
00
- -----------------------------------------------------------------
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CUSIP No. 125708107 13G Page 5 of 13 Pages
- -----------------------------------------------------------------
1 NAME OF REPORTING PERSON
IRS IDENTIFICATION NO. OF ABOVE PERSON
Robert A. Rayne
- -----------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a)/X/
(b)/ /
- -----------------------------------------------------------------
3 SEC USE ONLY
- -----------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
United Kingdom
- -----------------------------------------------------------------
NUMBER OF 5 SOLE VOTING POWER
SHARES 92,500
BENEFICIALLY ----------------------------------------
OWNED BY 6 SHARED VOTING POWER
EACH 0
REPORTING ----------------------------------------
PERSON 7 SOLE DISPOSITIVE POWER
WITH 92,500
----------------------------------------
8 SHARED DISPOSITIVE POWER
0
- -----------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
92,500
- -----------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
CERTAIN SHARES*
- -----------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
0.4
- -----------------------------------------------------------------
12 TYPE OF REPORTING PERSON
IN
- -----------------------------------------------------------------
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CUSIP No. 125708107 13G Page 6 of 13 Pages
- -----------------------------------------------------------------
1 NAME OF REPORTING PERSON
IRS IDENTIFICATION NO. OF ABOVE PERSON
Eugene M. Weber
- -----------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a)/X/
(b)/ /
- -----------------------------------------------------------------
3 SEC USE ONLY
- -----------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- -----------------------------------------------------------------
NUMBER OF 5 SOLE VOTING POWER
SHARES 10,000
BENEFICIALLY ----------------------------------------
OWNED BY 6 SHARED VOTING POWER
EACH 0
REPORTING ----------------------------------------
PERSON 7 SOLE DISPOSITIVE POWER
WITH 10,000
----------------------------------------
8 SHARED DISPOSITIVE POWER
0
- -----------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
10,000
- -----------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
CERTAIN SHARES*
- -----------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
0.04
- -----------------------------------------------------------------
12 TYPE OF REPORTING PERSON
IN
- -----------------------------------------------------------------
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CUSIP No. 125708107 13G Page 7 of 13 Pages
- -----------------------------------------------------------------
1 NAME OF REPORTING PERSON
IRS IDENTIFICATION NO. OF ABOVE PERSON
Angela G. Weber
- -----------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a)/X/
(b)/ /
- -----------------------------------------------------------------
3 SEC USE ONLY
- -----------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- -----------------------------------------------------------------
NUMBER OF 5 SOLE VOTING POWER
SHARES 1,000
BENEFICIALLY ----------------------------------------
OWNED BY 6 SHARED VOTING POWER
EACH 0
REPORTING ----------------------------------------
PERSON 7 SOLE DISPOSITIVE POWER
WITH 1,000
----------------------------------------
8 SHARED DISPOSITIVE POWER
0
- -----------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,000
- -----------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
CERTAIN SHARES*
- -----------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
0.004
- -----------------------------------------------------------------
12 TYPE OF REPORTING PERSON
IN
- -----------------------------------------------------------------
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CUSIP No. 125708107 13G Page 8 of 13 Pages
ITEM 1.
(a) The name of the issuer is Digital Generation Systems, Inc.
(the "Issuer").
(b) The principal executive office of the Issuer is located at
875 Battery Street, San Francisco, CA 94111.
ITEM 2.
(a) The names of the persons filing this statement are:
London Merchant Securities plc ("LMS"); Lion Investments Limited
("Lion"); Westpool Investment Trust plc ("Westpool");
Robert A. Rayne ("Rayne"); Eugene M. Weber ("Mr. Weber"); and
Angela G. Weber ("Ms. Weber") (collectively, the "Filers").
(b) The principal business address of LMS, Lion, Westpool and
Rayne is 33 Robert Adam Street, London WIM 5AH, United Kingdom.
The principal business address of Mr. Weber and Ms. Weber is
50 California Street, Suite 3200, San Francisco, California
94111.
(c) LMS, Lion and Westpool are limited companies organized under the
laws of England and Wales. Rayne is a citizen of the
United Kingdom. Mr. Weber and Ms. Weber are citizens of the
United States.
(d) This statement relates to shares of common stock of the Issuer
(the "Stock").
(e) The CUSIP number of the Stock is 125708107.
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CUSIP No. 125708107 13G Page 9 of 13 Pages
ITEM 3. If this statement is filed pursuant to rule 240.13d-1(b) or
240.13d-2(b) or (c), check whether the person filing is a:
(a) ___ Broker or dealer registered under section 15 of the Act (15
U.S.C. 78o).
(b) ___ Bank as defined in section 3(a)(6) of the Act (15 U.S.C.
78c).
(c) ___ Insurance company as defined in section 3(a)(19) of the Act
(15 U.S.C. 78c).
(d) ___ Investment company registered under section 8 of the
Investment Company Act of 1940 (15 U.S.C. 80a-8).
(e) ___ An investment adviser in accordance with 240.13d-
1(b)(1)(ii)(E).
(f) ___ An employee benefit plan or endowment fund in accordance
with 240.13d-1(b)(1)(ii)(F).
(g) ___ A parent holding company or control person in accordance
with 240.13d-1(b)(1)(ii)(G)
(h) ___ A savings association as defined in section 3(b) of the
Federal Deposit Insurance Act (12 U.S.C. 1813).
(i) ___ A church plan that is excluded from the definition of an
investment company under section 3(c)(14) of the Investment Company Act of
1940 (15 U.S.C. 80a-3).
(j) ___ Group, in accordance with section 240.13d-1(b)(1)(ii)(J)
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CUSIP No. 125708107 13G Page 10 of 13 Pages
ITEM 4. OWNERSHIP
See Items 5-9 and 11 on the cover sheet for each Filer.
ITEM 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS
If this statement is being filed to report the fact that as of the date
hereof the reporting person has ceased to be the beneficial owner of more
than five percent of the class of securities, check the following /___/.
ITEM 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON
Not applicable.
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CUSIP No. 125708107 13G Page 11 of 13 Pages
ITEM 7. IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH ACQUIRED
THE SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY
Not applicable.
ITEM 8. IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP
See Item 2(a) of this Schedule
ITEM 9. NOTICE OF DISSOLUTION OF GROUP
Not applicable.
ITEM 10. CERTIFICATION
By signing below I certify that, to the best of my knowledge and belief,
the securities referred to above were not acquired and are not held for the
purpose of or with the effect of changing or influencing the control of the
issuer of the securities and were not acquired and are not held in
connection with or as a participant in any transaction having that purpose
or effect.
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: February 2, 1999
London Merchant Securities plc
By: /s/ Robert A. Rayne /s/ Robert A. Rayne
Robert A. Rayne Robert A. Rayne
Director
Lion Investments Limited /s/Eugene M. Weber
Eugene M. Weber
By: /s/ Robert A. Rayne
Robert A. Rayne
Director
/s/ Angela G. Weber
Westpool Investment Trust plc Angela G. Weber
By: /s/ Robert A. Rayne
Robert A. Rayne
Director
<PAGE>
13G
CUSIP No. 125708107 Page 12 of 13 Pages
EXHIBIT A
AGREEMENT REGARDING JOINT FILING
OF STATEMENT ON SCHEDULE 13D OR 13G
The undersigned agree to file jointly with the Securities and Exchange
Commission (the "SEC") any and all statements on Schedule 13D or Schedule
13G (and any amendments or supplements thereto) required under section
13(d) of the Securities Exchange Act of 1934, as amended, in connection
with purchases by the undersigned of common stock of Digital Generation
Systems, Inc. For that purpose, the undersigned hereby constitute and
appoint London Merchant Securities plc, a limited company organized under
the laws of England and Wales, as their true and lawful agent and attorney-
in-fact, with full power and authority for and on behalf of the undersigned
to prepare or cause to be prepared, sign, file with the SEC and furnish to
any other person all certificates, instruments, agreements and documents
necessary to comply with section 13(d) and section 16(a) of the Securities
Exchange Act of 1934, as amended, in connection with said purchases, and to
do and perform every act necessary and proper to be done incident to the
exercise of the foregoing power, as fully as the undersigned might or could
do if personally present.
DATED: May 10, 1997
London Merchant Securities plc
By: /s/ Robert A. Rayne
Robert A. Rayne
Director
Lion Investments Limited
By: /s/ Robert A. Rayne
Robert A. Rayne
Director
Westpool Investment Trust plc
By: /s/ Robert A. Rayne
Robert A. Rayne
Director
(Signatures continued on next page)
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13G
CUSIP No. 125708107 Page 13 of 13 Pages
(Signatures continued from previous page)
/s/ Robert A. Rayne
Robert A. Rayne
/s/ Iain MacPhail
Iain MacPhail
/s/Eugene M. Weber
Eugene M. Weber
/s/ Morris Cheston III
Morris Cheston III
/s/ Angela G. Weber
Angela G. Weber
BLD/5054/002/1027702.01
