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. 10)1
LIQUID AUDIO, INC.
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(Name of Issuer)
COMMON STOCK, $0.001 PAR VALUE
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(Title of Class of Securities)
53631T 10 2
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(CUSIP Number)
STEVEN WOLOSKY, ESQ.
OLSHAN GRUNDMAN FROME ROSENZWEIG & WOLOSKY LLP
505 Park Avenue
New York, New York 10022
(212) 753-7200
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
June 26, 2002
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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 7 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. 53631T 10 2 13D Page 2 of 7 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
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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 ITEM 2(d) OR 2(e) |_|
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 2,062,866
OWNED BY
EACH
REPORTING
PERSON WITH
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8 SHARED VOTING POWER
-0-
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9 SOLE DISPOSITIVE POWER
2,062,866
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10 SHARED DISPOSITIVE POWER
-0-
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
2,062,866
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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)
9.1%
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14 TYPE OF REPORTING PERSON*
PN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
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CUSIP No. 53631T 10 2 13D Page 3 of 7 Pages
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1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
WARREN G. LICHTENSTEIN
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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
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4 SOURCE OF FUNDS*
OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) |_|
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 2,062,866
OWNED BY
EACH
REPORTING
PERSON WITH
-----------------------------------------------------------------
8 SHARED VOTING POWER
-0-
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
2,062,866
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
2,062,866
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.1%
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14 TYPE OF REPORTING PERSON*
IN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
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CUSIP No. 53631T 10 2 13D Page 4 of 7 Pages
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The following constitutes Amendment No. 10 ("Amendment No. 10") to
the Schedule 13D filed by the undersigned. This Amendment No. 10 amends the
Schedule 13D as specifically set forth.
Item 4 is hereby amended to add the following:
As a result of the Issuer's failure to respond to the offer letter
from Steel Partners II dated June 18, 2002, on June 26, 2002, Steel Partners II
delivered a letter to the Board of Directors of the Issuer reiterating its offer
to acquire all of the Issuer's outstanding Common Stock for $2.75 per share in
cash. Steel Partners II continues to believe that its all-cash offer is superior
to the proposed merger with Alliance Entertainment Corp. and provides
shareholders an opportunity to maximize the value of their shares in the
short-term at a premium. A copy of the letter is filed as an exhibit to this
Amendment No. 10 and incorporated herein by reference.
Item 7 is hereby amended to add the following exhibit:
11. Letter from Steel Partners II, L.P. to the Board of
Directors of Liquid Audio, Inc., dated June 26, 2002.
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CUSIP No. 53631T 10 2 13D Page 5 of 7 Pages
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SIGNATURES
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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: June 27, 2002 STEEL PARTNERS II, L.P.
By: Steel Partners, L.L.C.
General Partner
By: /s/ Warren G. Lichtenstein
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Warren G. Lichtenstein
Chief Executive Officer
/s/ Warren G. Lichtenstein
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WARREN G. LICHTENSTEIN
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CUSIP No. 53631T 10 2 13D Page 6 of 7 Pages
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EXHIBIT INDEX
Exhibit Page
------- ----
1. Joint Filing Agreement, dated July 26,
2001 (previously filed).
2. Letter from Steel Partners II, L.P. to
the Board of Directors of Liquid
Audio, Inc., dated September 10, 2001
(previously filed).
3. Letter from Steel Partners II, L.P. to
certain officers and directors of
Liquid Audio, Inc., dated October 3,
2001 (previously filed).
4. Letter from Steel Partners II, L.P. to
the Board of Directors of Liquid
Audio, Inc., dated October 22, 2001
(previously filed).
5. Letter from Steel Partners II, L.P. to
the Board of Directors of Liquid
Audio, Inc., dated October 25, 2001
(previously filed).
6. Letter from Steel Partners II, L.P. to
the Board of Directors of Liquid
Audio, Inc., dated November 26, 2001
(previously filed).
7. Letter from Steel Partners II, L.P. to
the Board of Directors of Liquid
Audio, Inc., dated April 16, 2002
(previously filed).
8. Letter from Steel Partners II, L.P. to
the Board of Directors of Liquid
Audio, Inc., dated May 29, 2002
(previously filed).
9. Letter from Steel Partners II, L.P. to
the Board of Directors of Liquid
Audio, Inc., dated June 14, 2002
(previously filed).
10. Letter from Steel Partners II, L.P. to
the Board of Directors of Liquid
Audio, Inc., dated June 18, 2002
(previously filed).
11. Letter from Steel Partners II, L.P. to 7
the Board of Directors of Liquid
Audio, Inc., dated June 26, 2002.
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CUSIP No. 53631T 10 2 13D Page 7 of 7 Pages
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STEEL PARTNERS
150 SOUTH RODEO DRIVE
SUITE 100
BEVERLY HILLS, CALIFORNIA 90212
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TEL (310) 246-3741
FAX (310) 777-3041
June 26, 2002
The Board of Directors
Liquid Audio, Inc.
800 Chesapeake Drive
Redwood City, California 94063
Ladies and Gentlemen:
On June 18, 2002, Steel Partners II, L.P. ("Steel Partners"), the largest
shareholder of Liquid Audio, Inc. ("the Company"), expressed its dissatisfaction
with the proposed merger agreement between the Company and Alliance
Entertainment Corp. ("Alliance") and made an offer to purchase the Company for
$2.75 per share in cash. Since that time, the Board of Directors has not
returned numerous phone calls we have made in order to further discuss our
offer. Therefore, we reiterate our offer to acquire all of the Company's
outstanding shares for $2.75 per share in cash. Our offer is not subject to any
financing contingency and we would require ten days to complete our due
diligence.
We expect the Board to meet and to formally notify Alliance that it has received
a "superior proposal" (as defined in Section 5.3(e)(iii) of the merger
agreement) as soon as possible. We believe our offer provides shareholders an
opportunity to maximize the value of their shares in the short-term at a premium
on a risk-free basis. We stand ready to meet with the Board of Directors at its
earliest convenience in order to give us an opportunity to explain why we
believe our offer is superior to the Alliance transaction and negotiate the
terms of a definitive agreement.
In this day of massive corporate fraud and corporate governance that only serves
to entrench bad management, it is now more imperative than ever that the Board
act appropriately and demonstrate its duty of loyalty and care to shareholders.
We ask that the Board allow all of the Company's shareholders to decide the fate
of Liquid Audio. Further delay only continues to harm shareholders since the
Company burns over $50,000 each day. Please call me to discuss at (310)
246-3741.
Very truly yours,
/s/ Josh Schechter
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Josh Schechter