- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------
SCHEDULE 14D-1
TENDER OFFER STATEMENT PURSUANT TO SECTION 14(D)(1)
OF THE SECURITIES EXCHANGE ACT OF 1934
---------------------
FINGERHUT COMPANIES, INC.
(NAME OF SUBJECT COMPANY)
BENGAL SUBSIDIARY CORP.
AND
FEDERATED DEPARTMENT STORES, INC.
(BIDDERS)
COMMON STOCK, PAR VALUE $0.01 PER SHARE
(TITLE OF CLASS OF SECURITIES)
------------------------
317867109
(CUSIP NUMBER OF CLASS OF SECURITIES)
DENNIS J. BRODERICK, ESQ.
SENIOR VICE PRESIDENT, GENERAL COUNSEL AND CORPORATE SECRETARY
FEDERATED DEPARTMENT STORES, INC.
7 WEST SEVENTH STREET
CINCINNATI, OHIO 45202
(513) 579-7000
(NAME, ADDRESS AND TELEPHONE NUMBER OF PERSON AUTHORIZED
TO RECEIVE NOTICES AND COMMUNICATIONS ON BEHALF OF BIDDERS)
------------------------------
COPY TO:
ROBERT A. PROFUSEK, ESQ.
JONES, DAY, REAVIS & POGUE
599 LEXINGTON AVENUE
NEW YORK, NEW YORK 10022
(212) 326-3939
------------------------
CALCULATION OF FILING FEE
TRANSACTION VALUATION* AMOUNT OF FILING FEE**
$1,481,735,800 $296,348
* Estimated for purposes of calculating the filing fee only. Such amount was
derived by multiplying $25.00, the amount offered for each share of common
stock, par value $0.01 per share (the "Shares"), of Fingerhut Companies,
Inc., by the sum of (i) 49,630,294, representing all of the Shares that were
issued and outstanding as of February 16, 1999, (ii) 9,622,746, representing
all of the Shares reserved for issuance upon the exercise of all outstanding
options to purchase Shares, (iii) 7,392, representing Shares reserved for
issuance under the Directors' Retainer Stock Deferral Plan, and (iv) 9,000,
representing Shares to be issued under the Employee Stock Purchase Plan.
** 1/50th of 1% of the value of the transaction.
/ / Check box if any part of the fee is offset as provided by Rule 0-11(a)(2)
and identify the filing with which the offsetting fee was previously paid.
Identify the previous filing by registration statement number, or the form
or schedule and the date of its filing.
AMOUNT PREVIOUSLY PAID: NOT APPLICABLE FILING PARTY: NOT APPLICABLE
FORM OR REGISTRATION NO.: NOT APPLICABLE DATE FILED: NOT APPLICABLE
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PAGE 1 OF 6 PAGES
(EXHIBIT INDEX IS LOCATED ON PAGE 6)
This Tender Offer Statement on Schedule 14D-1 is filed by Federated
Department Stores, Inc. ("Parent") and Bengal Subsidiary Corp., a direct, wholly
owned subsidiary of Parent ("Purchaser"), relating to the offer by Purchaser to
purchase all of the outstanding common shares (the "Shares") of Fingerhut
Companies, Inc. (the "Company") at a purchase price of $25.00 per Share, net to
the seller in cash, without interest, on the terms and subject to the conditions
set forth in the Offer To Purchase, dated February 18, 1999 (the "Offer To
Purchase"), and in the related Letter of Transmittal and any amendments or
supplements thereto, copies of which are attached hereto as Exhibits (a)(1) and
(a)(2), respectively (which collectively constitute the "Offer").
The item numbers and responses thereto below are in accordance with the
requirements of Schedule 14D-1.
ITEM 1. SECURITY AND SUBJECT COMPANY
(a) The name of the subject company is Fingerhut Companies, Inc. The address
of its principal executive offices is 4400 Baker Road, Minnetonka, Minnesota,
55343. The telephone number of the Company at such location is (612) 932-3100.
(b) The information set forth on the cover page and under "Introduction" in
the Offer To Purchase is incorporated herein by reference.
(c) The information set forth in Section 6 ("Price Range of the Shares;
Dividends on the Shares") of the Offer To Purchase is incorporated herein by
reference.
ITEM 2. IDENTITY AND BACKGROUND
(a)-(d), (g) This Statement is filed by Purchaser and Parent. The
information set forth on the cover page, under "Introduction," in Section 9
("Certain Information Concerning Purchaser and Parent") and in Schedule I of the
Offer To Purchase is incorporated herein by reference.
(e)-(f) None of Purchaser, Parent or, to the knowledge of Purchaser and
Parent, any of the persons listed in Schedule I to the Offer To Purchase has
during the last five years been (i) convicted in a criminal proceeding
(excluding traffic violations or similar misdemeanors) or (ii) a party to a
civil proceeding of a judicial or administrative body of a competent
jurisdiction and as a result of such proceeding was or is subject to a judgment,
decree or final order enjoining future violations of, or prohibiting activities
subject to, federal or state securities laws or finding any violation of such
laws.
ITEM 3. PAST CONTACTS, TRANSACTIONS OR NEGOTIATIONS WITH THE SUBJECT COMPANY
(a)-(b) The information set forth under "Introduction" and in Section 8
("Certain Information Concerning the Company"), Section 9 ("Certain Information
Concerning Purchaser and Parent"), Section 11 ("Background of the Offer") and
Section 12 ("Purpose of the Offer and the Merger; Plans for the Company; the
Merger Agreement; Other Matters") of the Offer To Purchase is incorporated
herein by reference.
ITEM 4. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
(a)-(b) The information set forth in Section 10 ("Source and Amount of
Funds") of the Offer To Purchase is incorporated herein by reference.
(c) Not applicable.
2 of 6 Pages
ITEM 5. PURPOSE OF THE TENDER OFFER AND PLANS OR PROPOSALS OF THE BIDDER
(a)-(e) The information set forth under "Introduction" and in Section 12
("Purpose of the Offer and the Merger; Plans for the Company; the Merger
Agreement; Other Matters") and in Section 13 ("Dividends and Distributions") of
the Offer To Purchase is incorporated herein by reference.
(f)-(g) The information set forth in Section 7 ("Effect of the Offer on the
Market for the Shares, Stock Exchange Listing and Exchange Act Registration, and
Margin Securities") of the Offer To Purchase is incorporated herein by
reference.
ITEM 6. INTEREST IN SECURITIES OF THE SUBJECT COMPANY
(a)-(b) The information set forth under "Introduction" and in Section 9
("Certain Information Concerning Purchaser and Parent") of the Offer To Purchase
is incorporated herein by reference.
ITEM 7. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO
THE SUBJECT COMPANY'S SECURITIES
The information set forth under "Introduction" and in Section 9 ("Certain
Information Concerning Purchaser and Parent") and Section 12 ("Purpose of the
Offer and the Merger; Plans for the Company; the Merger Agreement; Other
Matters") of the Offer To Purchase is incorporated herein by reference.
ITEM 8. PERSONS RETAINED, EMPLOYED OR TO BE COMPENSATED
The information set forth under "Introduction" and in Section 16 ("Fees and
Expenses") of the Offer To Purchase is incorporated herein by reference.
ITEM 9. FINANCIAL STATEMENTS OF CERTAIN BIDDERS
The information set forth in Section 9 ("Certain Information Concerning
Purchaser and Parent") of the Offer To Purchase is incorporated herein by
reference.
ITEM 10. ADDITIONAL INFORMATION
(a) The information set forth under "Introduction" and in Section 9
("Certain Information Concerning Purchaser and Parent") and Section 12 ("Purpose
of the Offer and the Merger; Plans for the Company; the Merger Agreement; Other
Matters") of the Offer To Purchase is incorporated herein by reference.
(b)-(c) The information set forth under "Introduction" and in Section 14
("Certain Conditions of the Offer") and Section 15 ("Certain Legal Matters") of
the Offer To Purchase is incorporated herein by reference.
(d) The information set forth in Section 7 ("Effect of the Offer on the
Market for the Shares, Stock Exchange Listing and Exchange Act Registration, and
Margin Securities") of the Offer To Purchase is incorporated herein by
reference.
(e) To the knowledge of Parent and Purchaser, no legal proceedings relating
to the Offer and the Merger required to be disclosed in Item 10(e) of Schedule
14D-1 are pending or have been instituted.
(f) The information set forth in the Offer To Purchase and the Letter of
Transmittal, copies of which are attached hereto as Exhibits (a)(1) and (a)(2),
respectively, is incorporated herein by reference.
3 of 6 Pages
ITEM 11. MATERIAL TO BE FILED AS EXHIBITS
(a)(1) Offer To Purchase, dated February 18, 1999
(a)(2) Letter of Transmittal
(a)(3) Notice of Guaranteed Delivery
(a)(4) Form of Letter to Brokers, Dealers, Commercial Banks, Trust Companies and
Other Nominees
(a)(5) Form of Letter to Clients for use by Brokers, Dealers, Commercial Banks,
Trust Companies and Other Nominees
(a)(6) Guidelines for Certification of Taxpayer Identification Number on
Substitute Form W-9
(a)(7) Form of Summary Advertisement, dated February 18, 1999
(a)(8) Text of Joint Press Release of Federated Department Stores, Inc. and
Fingerhut Companies, Inc., dated February 11, 1999
(b)(1) 364-Day Credit Agreement, dated as of July 28, 1997, by and among Parent,
the Initial Lenders named therein, Citibank, N.A., as Administrative
Agent and Paying Agent, The Chase Manhattan Bank, as Administrative
Agent, BankBoston, N.A., as Syndication Agent, and the Bank of America,
National Trust & Savings Association, as Documentation Agent
(Incorporated by reference to Exhibit 10.1 to the Company's Quarterly
Report on Form 10-Q for the period ended August 2, 1997 (the "August 1997
Form 10-Q"))
(b)(2)Amended and Restated Credit Agreement, dated as of June 29, 1998, by and
among Parent, the Initial Lenders named therein, Citibank, N.A., as
Administrative Agent and Paying Agent, The Chase Manhattan Bank, as
Administrative Agent, BankBoston, N.A., as Syndication Agent, and The Bank
of America, National Trust & Savings Association, as Documentation Agent
(Incorporated by reference to Exhibit 10.1 to the Company's Quarterly
Report on Form 10-Q for the period ended August 1, 1998 (the "August 1998
Form 10-Q"))
(b)(3) Five-Year Credit Agreement, dated as of July 28, 1997, by and among
Parent, the Initial Lenders named therein, Citibank, N.A., as
Administrative Agent and Paying Agent, The Chase Manhattan Bank, as
Administrative Agent, BankBoston, N.A., as Syndication Agent, and the
Bank of America, National Trust & Savings Association, as Documentation
Agent (Incorporated by reference to Exhibit 10.2 to the August 1997 Form
10-Q)
(b)(4) Letter Amendment to the Five-Year Credit Agreement, dated as of June 29,
1998, by and among Parent, the Initial Lenders named therein, Citibank,
N.A., as Administrative Agent and Paying Agent, The Chase Manhattan Bank,
as Administrative Agent, BankBoston, N.A., as Syndication Agent, and the
Bank of America, National Trust & Savings Association, as Documentation
Agent (Incorporated by reference to Exhibit 10.2 to the August 1998 Form
10-Q)
(c)(1) Agreement and Plan of Merger, dated February 10, 1999, among Federated
Department Stores, Inc., Bengal Subsidiary Corp. and Fingerhut Companies,
Inc.
(c)(2) Confidentiality Agreement, dated November 11, 1998, between Federated
Department Stores, Inc. and Fingerhut Companies, Inc.
(d) Not applicable
(e) Not applicable
(f) Not applicable
4 of 6 Pages
SIGNATURES
After due 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 18, 1999
BENGAL SUBSIDIARY CORP.
By: /s/ DENNIS J. BRODERICK
-----------------------------------------
Name: Dennis J. Broderick
Title: President
FEDERATED DEPARTMENT STORES, INC.
By: /s/ DENNIS J. BRODERICK
-----------------------------------------
Name: Dennis J. Broderick
Title: Senior Vice President and General
Counsel
Page 5 of 6 Pages
EXHIBIT INDEX
EXHIBIT DESCRIPTION
- ----------- -----------------------------------------------------------------------------------------------------
(a)(1) Offer to Purchase, dated February 18, 1999
(a)(2) Letter of Transmittal
(a)(3) Notice of Guaranteed Delivery
(a)(4) Form of Letter to Brokers, Dealers, Commercial Banks, Trust Companies and Other Nominees
(a)(5) Form of Letter to Clients for use by Brokers, Dealers, Commercial Banks, Trust Companies and Other
Nominees
(a)(6) Guidelines for Certification of Taxpayer Identification Number on Substitute Form W-9
(a)(7) Form of Summary Advertisement, dated February 18, 1999
(a)(8) Text of Joint Press Release of Federated Department Stores, Inc. and Fingerhut Companies, Inc., dated
February 11, 1999
(b)(1) 364-Day Credit Agreement, dated as of July 28, 1997, by and among Parent, the Initial Lenders named
therein, Citibank, N.A., as Administrative Agent and Paying Agent, The Chase Manhattan Bank, as
Administrative Agent, BankBoston, N.A., as Syndication Agent, and the Bank of America, National Trust
& Savings Association, as Documentation Agent (Incorporated by reference to Exhibit 10.1 to the
Company's Quarterly Report on Form 10-Q for the period ended August 2, 1997 (the "August 1997 Form
10-Q"))
(b)(2) Amended and Restated Credit Agreement, dated as of June 29, 1998, by and among Parent, the Initial
Lenders named therein, Citibank, N.A., as Administrative Agent and Paying Agent, The Chase Manhattan
Bank, as Administrative Agent, BankBoston, N.A., as Syndication Agent, and The Bank of America,
National Trust & Savings Association, as Documentation Agent (Incorporated by reference to Exhibit
10.1 to the Company's Quarterly Report on Form 10-Q for the period ended August 1, 1998 (the "August
1998 Form 10-Q"))
(b)(3) Five-Year Credit Agreement, dated as of July 28, 1997, by and among Parent, the Initial Lenders named
therein, Citibank, N.A., as Administrative Agent and Paying Agent, The Chase Manhattan Bank, as
Administrative Agent, BankBoston, N.A., as Syndication Agent, and the Bank of America, National Trust
& Savings Association, as Documentation Agent (Incorporated by reference to Exhibit 10.2 to the
August 1997 Form 10-Q)
(b)(4) Letter Amendment to the Five-Year Credit Agreement, dated as of June 29, 1998, by and among Parent,
the Initial Lenders named therein, Citibank, N.A., as Administrative Agent and Paying Agent, The
Chase Manhattan Bank, as Administrative Agent, BankBoston, N.A., as Syndication Agent, and the Bank
of America, National Trust & Savings Association, as Documentation Agent (Incorporated by reference
to Exhibit 10.2 to the August 1998 Form 10-Q)
(c)(1) Agreement and Plan of Merger, dated February 10, 1999, among Federated Department Stores, Inc.,
Bengal Subsidiary Corp. and Fingerhut Companies, Inc.
(c)(2) Confidentiality Agreement, dated November 11, 1998, between Federated Department Stores, Inc. and
Fingerhut Companies, Inc.
(d) Not applicable
(e) Not applicable
(f) Not applicable
Page 6 of 6 Pages