sec document
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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SCHEDULE 13D
(RULE 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO
RULE 13d-2(a)
(Amendment No. 6)(1)
NOVOSTE CORPORATION
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(Name of Issuer)
COMMON STOCK, $0.01 PAR VALUE
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(Title of Class of Securities)
67010C209
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(CUSIP Number)
STEVEN WOLOSKY, ESQ.
OLSHAN GRUNDMAN FROME ROSENZWEIG & WOLOSKY LLP
Park Avenue Tower
65 East 55th Street
New York, New York 10022
(212) 451-2300
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
November 21, 2005
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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 that 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 for other
parties to whom copies are to be sent.
(Continued on following pages)
(Page 1 of 9 Pages)
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(1) 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 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).
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CUSIP No. 67010C209 13D Page 2 of 9 Pages
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================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
STEEL PARTNERS II, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* / / (a)
/ / (b)
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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
SHARES
BENEFICIALLY 608,301
OWNED BY
EACH
REPORTING
PERSON WITH
----------------------------------------------------------------
8 SHARED VOTING POWER
- 0 -
----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
608,301
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
608,301
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
14.9%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
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CUSIP No. 67010C209 13D Page 3 of 9 Pages
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================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
STEEL PARTNERS, L.L.C.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* / / (a)
/ / (b)
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
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
SHARES
BENEFICIALLY 608,301
OWNED BY
EACH
REPORTING
PERSON WITH
----------------------------------------------------------------
8 SHARED VOTING POWER
- 0 -
----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
608,301
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
608,301
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
14.9%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
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CUSIP No. 67010C209 13D Page 4 of 9 Pages
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================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
WARREN G. LICHTENSTEIN
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* / / (a)
/ / (b)
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
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
SHARES
BENEFICIALLY 608,301
OWNED BY
EACH
REPORTING
PERSON WITH
----------------------------------------------------------------
8 SHARED VOTING POWER
- 0 -
----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
608,301
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
608,301
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
14.9%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
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CUSIP No. 67010C209 13D Page 5 of 9 Pages
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The following constitutes Amendment No. 6 ("Amendment No. 6") to the
Schedule 13D filed by the undersigned. This Amendment No. 6 amends the Schedule
13D as specifically set forth.
Item 3 is hereby amended to add the following:
Since the filing of the last amendment to this Schedule 13D, the
Reporting Persons neither purchased nor sold any Shares. The Issuer implemented
a one-for-four reverse stock split effective on November 4, 2005, and as a
result the number of Shares owned by Steel Partners II was proportionally
reduced. Following the reverse split, Steel Partners II owned 608,301 Shares.
Item 4 is hereby amended to add the following:
On November 21, 2005, Steel Partners II delivered a letter to the
Board of the Issuer expressing its disappointment with the Board's decision to
file its preliminary proxy statement to approve, among other things, a plan of
liquidation, which Steel Partners II does not believe is in the best interest of
the Issuer's shareholders. In the letter, Steel Partners II also expresses its
view that the Board's authorization to fund over $4 million into rabbi trusts in
order to make payments to executives and other employees upon a change in
control constituted a blatant disregard by the Board of the interests of its
shareholders. Steel Partners II states in the letter its intention to vote all
of its Shares against the liquidation proposal, as well as to file proxy
material with the SEC and actively solicit proxies in opposition to the
liquidation. Steel Partners II further reiterates its demands that the Issuer
immediately redeem its shareholder rights plan and that the Board be
reconstituted to include Steel Partners II representatives. The letter is filed
as Exhibit No. 5 to this Amendment No. 6 and is incorporated herein by
reference.
On November 22, 2005, Steel Partners II delivered a letter to the
Issuer requesting, pursuant to Section 607.1602 of the Florida Business
Corporation Act, a complete list of the Issuer's shareholders and other
corporate records in order to allow Steel Partners II to communicate with the
Issuer's shareholders regarding the Issuer's proposals to be submitted to a vote
of the shareholders at a special meeting of shareholders of the Issuer
contemplated by the preliminary proxy statement filed by the Issuer with the SEC
on November 15, 2005.
Item 7 is hereby amended to add the following exhibit:
5. Letter from Steel Partners II, L.P. to Novoste Corporation, dated
November 21, 2005.
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CUSIP No. 67010C209 13D Page 6 of 9 Pages
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SIGNATURES
After reasonable inquiry and to the best of his knowledge and belief,
each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Dated: November 22, 2005 STEEL PARTNERS II, L.P.
By: Steel Partners, L.L.C.
General Partner
By: /s/ Warren G. Lichtenstein
-------------------------------------
Warren G. Lichtenstein
Managing Member
STEEL PARTNERS, L.L.C.
By: /s/ Warren G. Lichtenstein
-------------------------------------
Warren G. Lichtenstein
Managing Member
/s/ Warren G. Lichtenstein
----------------------------------------
WARREN G. LICHTENSTEIN
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CUSIP No. 67010C209 13D Page 7 of 9 Pages
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EXHIBIT INDEX
Exhibit Page
------- ----
1. Joint Filing Agreement by and among Steel Partners II, --
L.P., Steel Partners, L.L.C. and Warren G. Lichtenstein,
dated September 26, 2003 (previously filed).
2. Confidentiality and Standstill Agreement by and between --
Novoste Corporation and Steel Partners II, L.P., dated
November 10, 2004 (previously filed).
3. Letter from Steel Partners II, L.P. to Novoste --
Corporation, dated April 4, 2005 (previously filed).
4. Letter from Steel Partners II, L.P. to Novoste --
Corporation, dated September 7, 2005 (previously filed).
5. Letter from Steel Partners II, L.P. to Novoste 8 to 9
Corporation, dated November 21, 2005.
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CUSIP No. 67010C209 13D Page 8 of 9 Pages
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STEEL PARTNERS, II, L.P.
590 MADISON AVENUE
32ND FLOOR
NEW YORK, NEW YORK 10022
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TEL (212) 520-2300
FAX (212) 520-2301
November 21, 2005
FOR DISSEMINATION TO NOVOSTE BOARD OF DIRECTORS
Novoste Corporation
4350 International Blvd.
Norcross, GA 30093
Attn: Corporate Secretary
Gentlemen:
Steel Partners II, L.P. ("Steel"), the largest stockholder of Novoste
Corporation ("Novoste"), is extremely disappointed with the Board's decision to
file its preliminary proxy statement to approve a plan of liquidation without
addressing the serious concerns we have raised. As we have clearly expressed to
you in letters and conversations, Steel does not believe a liquidation is in the
best interest of the shareholders. As a result of a liquidation, Novoste would
lose its ability to utilize its substantial net operating loss carryforwards, a
significant non-balance sheet asset. We continue to believe that there is also
additional intrinsic value in remaining a public company. We also strongly
oppose the Board's ability under the proposed plan to transfer all the proceeds,
at its sole discretion, into a liquidating trust. In our experience,
professional trustees do a poor job of protecting shareholders' interests and we
are concerned that proceeds of the liquidation would not be efficiently
distributed to shareholders under the supervision of a trustee.
As the Board should be well aware, Steel believes that it was a blatant
disregard for the interests of the shareholders that the Board authorized the
funding of over $4 million into rabbi trusts in order to make payments to
executives and other employees upon a change in control. We also have several
concerns as to whether the Board may have further breached its fiduciary duty
with respect to its "severance settlement" agreement with certain senior
executives which Novoste announced on November 11, 2005 which will result in
payments aggregating over $1.7 million. To add insult to injury, we recently
learned from public filings that one of the rabbi trusts is over-funded by over
a $1 million.
We implore the Board to learn from its past mistakes, do not follow the
same pattern as with the failed ONI Medical Systems merger where the Board
ignored shareholder concerns and proceeded with a failed and costly solicitation
prior to terminating the merger agreement for lack of shareholder support. The
Board should not continue supporting yet another proposal that will again waste
shareholder assets.
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CUSIP No. 67010C209 13D Page 9 of 9 Pages
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We state for the record that Steel intends to vote all of its 608,301
shares of Novoste (14.9% of the outstanding shares) against the liquidation
proposal, as well as to file proxy material with the SEC and actively solicit
proxies in opposition to the liquidation. Steel has no objection to the
proposals to sell the vascular brachytherapy business and to reduce the minimum
size of the board. Given Steel's substantial ownership position, it should be
obvious to the Board that it should promptly withdraw the liquidation proposal
and stop wasting any more time and resources with respect to this matter. We
would interpret the Board's failure to immediately withdraw the liquidation
proposal as a clear indication that the Board has no intention to maximize
shareholder value. Steel also reiterates its demands that Novoste immediately
redeem its shareholder rights plan and that the Board of Directors be
immediately reconstituted to include Steel representatives.
Steel has evaluated all of its options with respect to its investment
in Novoste and intends to act accordingly in the event we do not receive a
favorable response to this letter.
Very truly yours,
STEEL PARTNERS II, L.P.
By: Steel Partners, L.L.C.
General Partner
By: /s/ Warren G. Lichtenstein
------------------------------
Warren G. Lichtenstein
Managing Member