UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 9)*
WADDELL & REED FINANCIAL, INC.
------------------------------
(Name of Issuer)
Class A Common Stock, Par Value $0.01
Class B Common Stock, Par Value $0.01
-------------------------------------
(Title of Class of Securities)
930059100
930059209
---------
(CUSIP Number)
Murray A. Indick
BLUM Capital Partners, L.P.
909 Montgomery Street, Suite 400
San Francisco, CA 94133
(415) 434-1111
--------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
March 17, 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(b)(3) or (4), check the following
box [ ].
*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).
Page 1 of 12
CUSIP NO. 930059100, 930059209 SCHEDULE 13D Page 2 of 12
- ------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON RCBA STRATEGIC PARTNERS, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 94-3303833
- ------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
- ------------------------------------------------------------------------------
3. SEC USE ONLY
- ------------------------------------------------------------------------------
4. SOURCE OF FUNDS* WC
- ------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware
- ------------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER Class A Common Stock 3,019,500**
BENEFICIALLY Class B Common Stock 3,114,600**
OWNED BY EACH -----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER
Class A Common Stock 3,019,500**
Class B Common Stock 3,114,600**
- ------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
Class A Common Stock 3,019,500**
Class B Common Stock 3,114,600**
- ------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
- ------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
Class A Common Stock 10.48%**
Class B Common Stock 11.47%**
- ------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON PN
- ------------------------------------------------------------------------------
** See Item 5 below
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 930059100, 930059209 SCHEDULE 13D Page 3 of 12
- ------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON BLUM CAPITAL PARTNERS, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 94-3205364
- ------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
- ------------------------------------------------------------------------------
3. SEC USE ONLY
- ------------------------------------------------------------------------------
4. SOURCE OF FUNDS* See Item 3
- ------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION California
- ------------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER Class A Common Stock 3,019,500**
BENEFICIALLY Class B Common Stock 3,114,600**
OWNED BY EACH -----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER
Class A Common Stock 3,019,500**
Class B Common Stock 3,114,600**
- ------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
Class A Common Stock 3,019,500**
Class B Common Stock 3,114,600**
- ------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
- ------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
Class A Common Stock 10.48%**
Class B Common Stock 11.47%**
- ------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON PN, IA
- ------------------------------------------------------------------------------
** See Item 5 below
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 930059100, 930059209 SCHEDULE 13D Page 4 of 12
- ------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON RICHARD C. BLUM & ASSOCIATES, INC.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 94-2967812
- ------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
- ------------------------------------------------------------------------------
3. SEC USE ONLY
- ------------------------------------------------------------------------------
4. SOURCE OF FUNDS* See Item 3
- ------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION California
- ------------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER Class A Common Stock 3,019,500**
BENEFICIALLY Class B Common Stock 3,114,600**
OWNED BY EACH -----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER
Class A Common Stock 3,019,500**
Class B Common Stock 3,114,600**
- ------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
Class A Common Stock 3,019,500**
Class B Common Stock 3,114,600**
- ------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
- ------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
Class A Common Stock 10.48%**
Class B Common Stock 11.47%**
- ------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON CO
- ------------------------------------------------------------------------------
** See Item 5 below
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 930059100, 930059209 SCHEDULE 13D Page 5 of 12
- ------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON RCBA GP, L.L.C.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 94-3303831
- ------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
- ------------------------------------------------------------------------------
3. SEC USE ONLY
- ------------------------------------------------------------------------------
4. SOURCE OF FUNDS* See Item 3
- ------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware
- ------------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER Class A Common Stock 3,019,500**
BENEFICIALLY Class B Common Stock 3,114,600**
OWNED BY EACH -----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER
Class A Common Stock 3,019,500**
Class B Common Stock 3,114,600**
- ------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
Class A Common Stock 3,019,500**
Class B Common Stock 3,114,600**
- ------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
- ------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
Class A Common Stock 10.48%**
Class B Common Stock 11.47%**
- ------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON OO (Limited Liability Company)
- ------------------------------------------------------------------------------
** See Item 5 below
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 930059100, 930059209 SCHEDULE 13D Page 6 of 12
- ------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON RICHARD C. BLUM
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
- ------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
- ------------------------------------------------------------------------------
3. SEC USE ONLY
- ------------------------------------------------------------------------------
4. SOURCE OF FUNDS* See Item 3
- ------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION U.S.A.
- ------------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER Class A Common Stock 3,019,500**
BENEFICIALLY Class B Common Stock 3,114,600**
OWNED BY EACH -----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER
Class A Common Stock 3,019,500**
Class B Common Stock 3,114,600**
- ------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
Class A Common Stock 3,019,500**
Class B Common Stock 3,114,600**
- ------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
- ------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
Class A Common Stock 10.48%**
Class B Common Stock 11.47%**
- ------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON IN
- ------------------------------------------------------------------------------
** See Item 5 below
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 930059100, 930059209 SCHEDULE 13D Page 7 of 12
This Amendment No. 9 amends the Statement on Schedule 13D (the "Schedule 13D")
filed with the Securities and Exchange Commission (the "Commission") on
November 8, 1999 by BLUM Capital Partners, L.P. (formerly Richard C. Blum &
Associates, L.P.), a California limited partnership ("BLUM LP"); Richard C.
Blum & Associates, Inc., a California corporation ("RCBA Inc."); RCBA
Strategic Partners, L.P., a Delaware limited partnership ("Strategic"); RCBA
GP, L.L.C., a Delaware limited liability company ("RCBA GP"); and Richard C.
Blum, the Chairman and a substantial shareholder of RCBA Inc. and a managing
member of RCBA GP (collectively, the "Reporting Persons"). This Amendment No.
9 relates to the shares of Class A Common Stock, par value $0.01, and Class B
Common Stock, par value $0.01, (collectively, the "Common Stock") of Waddell &
Reed Financial Services, Inc., a Delaware corporation (the "Issuer"). The
principal executive office and mailing address of the Issuer is 6300 Lamar
Avenue, Overland Park, Kansas 66202. Unless otherwise defined herein, all
capitalized terms shall have the meanings ascribed to them in the Schedule
13D.
Item 4. Purpose of Transaction
- ---------------------------------------------
Item 4 is amended to include the following description of a private
transaction: on March 17, 2000, the Reporting Persons sold 1,000,000 Class A
shares to the Company at $31.9375 per share. There is no change in the
Reporting Persons purpose with respect to the securities of the Company, as
reported in prior Schedule 13D filings by the Reporting Persons. The
Reporting Persons continue to hold 3,019,500 million Class A and 3,114,600
million Class B shares of the Company. The Reporting Persons hope that the
repurchase of these shares by the Issuer will, by the significant reduction of
total shares outstanding, inure to the economic benefit of all shareholders of
the Issuer, which of course includes the Reporting Persons as continuing
significant shareholders.
Except as stated above, the Reporting Persons restate the Item 4 disclosure as
previously filed.
Item 5. Interest in Securities of the Issuer
- ---------------------------------------------
Item 5 of the Schedule 13D is hereby amended as follows:
(a),(b) According to the Issuer's most recent Form 10-K, there were 28,803,015
shares of the Class A Common Stock outstanding and 27,145,647 shares of the
Class B Common Stock outstanding, as of March 3, 2000. Based on such
information, after taking into account the transactions described in Item 5(c)
below, the Reporting Persons report direct holdings and the corresponding
percentage interest of total shares outstanding as follows: (i) BLUM LP and
RCBA Inc. report holdings of 1,530,000 shares of the Class A Common Stock
(5.31%) and 1,522,000 shares of the Class B Common Stock (5.61%) on
CUSIP NO. 930059100, 930059209 SCHEDULE 13D Page 8 of 12
behalf of the limited partnerships for which BLUM LP serves as the general
partner and BLUM LP's investment advisory client accounts; (ii) Strategic
reports holdings of 1,467,400 shares of the Class A Common Stock (4.38%) and
1,403,300 shares of the Class B Common Stock (5.17%); and (iii) Mr. Blum
reports the aggregate of these shares for a total of 2,997,400 shares of the
Class A Common Stock (9.69%) and 2,925,300 shares of the Class B Common Stock
(10.78%).
In addition, because BLUM LP has voting and investment power with respect to
266,000 shares of the Class A Common Stock and 189,300 shares of the Class B
Common Stock that are legally owned by The Common Fund for the account of its
Equity Fund ("The Common Fund"), those shares are reported as beneficially
owned by BLUM LP The Common Fund is principally engaged in the business of
managing investments for educational institutions. The principal
administrative office of The Common Fund is located at 450 Post Road East,
Westport, Connecticut 06881-0909. The Common Fund disclaims membership in a
group with any of the Reporting Persons, and disclaims beneficial ownership of
any shares held by the Reporting Persons.
Voting and investment power concerning the above shares are held solely by
BLUM LP and RCBA GP. The Reporting Persons therefore may be deemed to be
members in a group, in which case each Reporting Person would be deemed to
have beneficial ownership of an aggregate of 3,019,500 shares of the Class A
Common Stock (10.48% of the Class A Common Stock shares outstanding) and
3,114,600 shares of the Class B Common Stock (11.47% of the Class B Common
Stock outstanding). As the sole general partner of BLUM LP, RCBA Inc. is
deemed the beneficial owner of the securities over which BLUM LP has voting
and investment power. As Chairman and a substantial shareholder of RCBA Inc.,
Richard C. Blum might be deemed to be the beneficial owner of the securities
beneficially owned by RCBA Inc. Additionally, Mr. Blum might be deemed to be
the beneficial owner of the securities over which RCBA GP has voting and
investment power. Although Mr. Blum is joining in this Schedule as a
Reporting Person, the filing of this Schedule shall not be construed as an
admission that he, or any of the other shareholders, directors or executive
officers of RCBA Inc., or managing members and members of RCBA GP, is, for any
purpose, the beneficial owner of any of the securities that are beneficially
owned by RCBA Inc. or RCBA GP, except to the extent of any pecuniary interest
therein.
(c) Pursuant to the transaction described in Item 4 the Reporting Persons sold
the following shares of Common Stock in a private transaction:
Entity Trade Date Class Shares Price/Share
- ------ ---------- ----- ------ ------------
BLUM LP's limited partnership 03-17-2000 Class A 1,000,000 31.93750
and investment advisory client
accounts (including
The Common Fund)
CUSIP NO. 930059100, 930059209 SCHEDULE 13D Page 9 of 12
During the last 60 days, the Reporting Persons sold the following shares of
Common Stock in the open market:
Entity Trade Date Class Shares Price/Share
- ------ ---------- ----- ------ ------------
BLUM LP's limited partnership 03-21-2000 Class A 500,000 36.00620
and investment advisory client 03-22-2000 Class A 414,400 36.01830
accounts (including 03-23-2000 Class A 80,000 36.39800
The Common Fund)
(d) and (e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect
to Securities of the Issuer
- ------------------------------------------------------------------------------
Except as previously disclosed, none of the Reporting Persons or, to the best
knowledge of the Reporting Persons, is a party to any contract, arrangement,
understanding or relationship with respect to any securities of the Issuer,
including but not limited to the transfer or voting of any securities of the
Issuer, finder's fees, joint ventures, loan or option arrangements, puts or
calls, guarantees of profits, division of profits or loss, or the giving or
withholding of proxies, except (i) as previously disclosed, or (ii) as noted
above, BLUM L.P. has voting and investment power of the shares held by it for
the benefit of the Common Fund.
CUSIP NO. 930059100, 930059209 SCHEDULE 13D Page 10 of 12
Item 7. Material to be Filed as Exhibits
- -----------------------------------------
Exhibit A Joint Filing Undertaking.
CUSIP NO. 930059100, 930059209 SCHEDULE 13D Page 11 of 12
SIGNATURES
After reasonable inquiry and to the best of our knowledge and belief, the
undersigned certify that the information set forth in this statement is true,
complete and correct.
Dated: March 27, 2000
RICHARD C. BLUM & ASSOCIATES, INC. BLUM CAPITAL PARTNERS, L.P.
By Richard C. Blum & Associates, Inc.
its general partner
By /s/ Murray A. Indick By /s/ Murray A. Indick
------------------------------- -----------------------------------
Murray A. Indick Murray A. Indick
Partner, General Counsel Partner, General Counsel
and Secretary and Secretary
RCBA GP, L.L.C.
By /s/ Murray A. Indick
-------------------------------
Murray A. Indick, Member
RCBA STRATEGIC PARTNERS, L.P.
By RCBA GP, L.L.C., its general partner
By /s/ Murray A. Indick
-------------------------------
Murray A. Indick, Member
/s/ Murray A. Indick
- ------------------------------------
RICHARD C. BLUM
By Murray A. Indick, Attorney-in-Fact
CUSIP NO. 930059100, 930059209 SCHEDULE 13D Page 12 of 12
Exhibit A
JOINT FILING UNDERTAKING
The undersigned, being duly authorized thereunto, hereby execute this
agreement as an exhibit to this Schedule 13D to evidence the agreement of the
below-named parties, in accordance with the rules promulgated pursuant to the
Securities Exchange Act of 1934, to file this Schedule jointly on behalf of
each such party.
Dated: March 27,2000
RICHARD C. BLUM & ASSOCIATES, INC. BLUM CAPITAL PARTNERS, L.P.
By Richard C. Blum & Associates, Inc.
its general partner
By /s/ Murray A. Indick By /s/ Murray A. Indick
------------------------------- -----------------------------------
Murray A. Indick Murray A. Indick
Partner, General Counsel Partner, General Counsel
and Secretary and Secretary
RCBA GP, L.L.C.
By /s/ Murray A. Indick
-------------------------------
Murray A. Indick, Member
RCBA STRATEGIC PARTNERS, L.P.
By RCBA GP, L.L.C., its general partner
By /s/ Murray A. Indick
-------------------------------
Murray A. Indick, Member
/s/ Murray A. Indick
- ------------------------------------
RICHARD C. BLUM
By Murray A. Indick, Attorney-in-Fact
