-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CFaf4O9ZsuWKRv91+TmBgdPuxJV9KEhdkXRGB8E9Qq6QrJMF654bX8njvUcOaC/h tOacsYC/rvGbExrGTmyINg== 0001104659-07-071542.txt : 20070927 0001104659-07-071542.hdr.sgml : 20070927 20070927083026 ACCESSION NUMBER: 0001104659-07-071542 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 5 FILED AS OF DATE: 20070927 DATE AS OF CHANGE: 20070927 GROUP MEMBERS: WICHITA BIO CORPORATION SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: BIOENVISION INC CENTRAL INDEX KEY: 0001028205 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 113375915 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-78274 FILM NUMBER: 071137975 BUSINESS ADDRESS: STREET 1: 345 PARK AVENUE STREET 2: 41ST FLOOR CITY: NEW YORK STATE: NY ZIP: 10154 BUSINESS PHONE: 212-750-6700 MAIL ADDRESS: STREET 1: 345 PARK AVENUE STREET 2: 41ST FLOOR CITY: NEW YORK STATE: NY ZIP: 10154 FORMER COMPANY: FORMER CONFORMED NAME: ASCOT GROUP INC DATE OF NAME CHANGE: 19961205 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: GENZYME CORP CENTRAL INDEX KEY: 0000732485 STANDARD INDUSTRIAL CLASSIFICATION: BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836] IRS NUMBER: 061047163 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: ONE KENDALL SQ CITY: CAMBRIDGE STATE: MA ZIP: 02139 BUSINESS PHONE: 6172527500 MAIL ADDRESS: STREET 1: ONE KENDALL SQUARE CITY: CAMBRIDGE STATE: MA ZIP: 02139 SC 13D/A 1 a07-24768_1sc13da.htm SC 13D/A

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

SCHEDULE 13D

 

Under the Securities Exchange Act of 1934
(Amendment No. 6)*

 

BIOENVISION, INC.

(Name of Issuer)

 

Common Stock, $0.001 par value per share

(Title of Class of Securities)

 

09059N100

(CUSIP Number)

 

Peter Wirth
Genzyme Corporation
500 Kendall Street
Cambridge, Massachusetts 02142
(617) 252-7500

(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)

 

with copies to:

 

Paul Kinsella
Ropes & Gray LLP
One International Place
Boston, Massachusetts 02110
(617) 951-7000

September 27, 2007

(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 §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. o

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See §240.13d-7 for other parties to whom copies are to be sent.

* 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).

 

 




 

CUSIP No. 09059N100

SCHEDULE 13D

Page 2 of 9

 

 

1.

Names of Reporting Persons.
Genzyme Corporation

I.R.S. Identification Nos. of above persons (entities only)
06-1047163

 

 

2.

Check the Appropriate Box if a Member of a Group (See Instructions)

 

 

(a)

 o

 

 

(b)

 x

 

 

3.

SEC Use Only

 

 

4.

Source of Funds (See Instructions)
WC

 

 

5.

Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)     o

 

 

6.

Citizenship or Place of Organization
Massachusetts

 

Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With

7.

Sole Voting Power

 

8.

Shared Voting Power
18,031,682(1)

 

9.

Sole Dispositive Power

 

10.

Shared Dispositive Power
18,031,682(1)

 

 

11.

Aggregate Amount Beneficially Owned by Each Reporting Person
18,031,682(1)

 

 

12.

Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)   o

 

 

13.

Percent of Class Represented by Amount in Row (11)
27.9%

 

 

14.

Type of Reporting Person (See Instructions)
CO


(1)    Assumes (i) full conversion of 2,250,000 shares of Series A Convertible Participating Preferred Stock into 4,500,000 shares of Common Stock and (ii) exercise of all 5,058,575 options to purchase Common Stock and 75,009 warrants to purchase Common Stock covered by Tender and Voting Agreements.




 

CUSIP No. 09059N100

SCHEDULE 13D

Page 3 of 9

 

 

1.

Names of Reporting Persons.
Wichita Bio Corporation

I.R.S. Identification Nos. of above persons (entities only)
44-2241310

 

 

2.

Check the Appropriate Box if a Member of a Group (See Instructions)

 

 

(a)

 o

 

 

(b)

 x

 

 

3.

SEC Use Only

 

 

4.

Source of Funds (See Instructions)
AF

 

 

5.

Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)     o

 

 

6.

Citizenship or Place of Organization
Delaware

 

Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With

7.

Sole Voting Power

 

8.

Shared Voting Power
18,031,682(1)

 

9.

Sole Dispositive Power

 

10.

Shared Dispositive Power
18,031,682(1)

 

 

11.

Aggregate Amount Beneficially Owned by Each Reporting Person
18,031,682(1)

 

 

12.

Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)   o

 

 

13.

Percent of Class Represented by Amount in Row (11)
27.9%

 

 

14.

Type of Reporting Person (See Instructions)
CO


(1)    Assumes (i) full conversion of 2,250,000 shares of Series A Convertible Participating Preferred Stock into 4,500,000 shares of Common Stock and (ii) exercise of all 5,058,575 options to purchase Common Stock and 75,009 warrants to purchase Common Stock covered by Tender and Voting Agreements.




 

CUSIP No. 09059N100

SCHEDULE 13D

Page 4 of 9

 

EXPLANATORY NOTE

This Amendment No. 6 (the “Amendment”) amends and restates the statement on Schedule 13D originally filed by the Reporting Persons with the Securities and Exchange Commission (the “SEC”) on June 8, 2007 (as previously amended and supplemented, the “Schedule 13D”).

Item 1.

Security and Issuer

 

This Statement on Schedule 13D relates to the Common Stock, $0.001 par value per share of Bioenvision, Inc. (“Bioenvision”), a Delaware corporation.  The principal executive offices of Bioenvision are located at 345 Park Avenue, 41st Floor, New York, NY 10154.

 

 

Item 2.

Identity and Background

 

This Statement is being jointly filed by Genzyme Corporation (“Genzyme”) and Wichita Bio Corporation (“Wichita Bio”, and together with Genzyme, the “Reporting Persons”) pursuant to Rule 13d-1 under the Securities and Exchange Act of 1934, as amended (the “Act”).  Set forth below is certain information with respect to each Reporting Person.

Genzyme Corporation

Genzyme, a Massachusetts corporation, is a publicly-held, global biotechnology company focused on rare inherited disorders, kidney disease, cancer, transplant and immune diseases, orthopaedics and diagnostic testing.  Genzyme’s principal place of business and principal office is located at 500 Kendall Street, Cambridge, Massachusetts 02142.

To the best of Genzyme’s knowledge as of the date hereof, set forth in Schedule I to this Schedule 13D and incorporated herein by reference is the following information with respect to each director and executive officer of Genzyme:

(1)   name;

(2)   business address;

(3)   present principal occupation or employment and the name, principal business and address of any corporation or other organization in which such employment is conducted; and

(4)   citizenship.

During the last five years, neither Genzyme nor, to the best of Genzyme’s knowledge, any of its directors or executive officers has been (1) convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or (2) a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding has been or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.

Wichita Bio Corporation

Wichita Bio, a Delaware corporation, is a direct wholly-owned subsidiary of Genzyme and has not conducted any business other than in respect to the acquisition of outstanding capital stock of Bioenvision.  Wichita Bio’s principal place of business and principal office is c/o Genzyme at 500 Kendall Street, Cambridge, Massachusetts 02142.

To the best of Wichita Bio’s knowledge as of the date hereof, set forth in Schedule I to this Schedule 13D and incorporated herein by reference is the following information with respect to each director and executive officer of Wichita Bio:

(1)   name;

(2)   business address;

(3)   present principal occupation or employment and the name, principal business and address of any corporation or other organization in which such employment is conducted; and

(4)   citizenship.

During the last five years, neither Wichita Bio nor, to the best of Wichita Bio’s knowledge, any of its directors or executive officers has been (1) convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or (2) a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding has been or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.

 




 

CUSIP No. 09059N100

SCHEDULE 13D

Page 5 of 9

 

Item 3.

Source and Amount of Funds or Other Consideration

 

On May 29, 2007, the Reporting Persons and Bioenvision entered into an Agreement and Plan of Merger (the “Merger Agreement”) pursuant to which Wichita Bio effectuated a tender offer (the “Offer”) to acquire (i) all of the issued and outstanding common stock, $0.001 par value per share (the “Common Stock”) of Bioenvision, including all rights to purchase Series A Junior Participating Preferred Stock issued pursuant to the Rights Agreement, dated as of November 17, 2004, between Bioenvision and American Stock Transfer & Trust Company as rights agent, (together, the “Common Shares”) at $5.60 per share in cash (the “Common Stock Offer Price”) and (ii) all of the issued and outstanding shares of Series A Convertible Participating Preferred Stock, par value $0.001 per share, (the “Preferred Shares,” and together with the Common Shares, the “Bioenvision Shares”) of Bioenvision at $11.20 per share in cash (the “Preferred Stock Offer Price”), plus all accrued but unpaid dividends.  On July 2, 2007, the Reporting Persons waived the condition to the Offer requiring that there be validly tendered and not withdrawn prior to the Expiration Date (as defined in the Merger Agreement) that number of Common Shares which, when added to any Common Shares owned by the Reporting Persons, represents a majority of the issued and outstanding Common Shares (assuming, for purposes of such calculation, the exercise or conversion of all vested “in-the-money” options and “in-the-money” warrants).  Of note, the Merger Agreement contemplates that “in-the-money” options and “in-the-money” warrants will be cashed out at their spread, so the Reporting Persons do not expect that many options or any warrants will be exercised prior to a vote on the Merger Agreement.

The Offer expired at 12:01 a.m. (New York City time) on July 10, 2007.  On July 10, 2007, Wichita Bio accepted for payment 8,398,098 Common Shares and 2,250,000 Preferred Shares that had been tendered and not withdrawn from the Offer, representing a total of 15.3% of the 55,035,740 outstanding Common Shares as of June 27, 2007 and 100% of the outstanding Preferred Shares as of June 27, 2007.  Included in these figures are all Common Shares tendered by notice of guaranteed delivery that were validly delivered within three NASDAQ Global Market trading days after the July 10, 2007 expiration date of the Offer, as required by the terms of the notice of guaranteed delivery. Genzyme provided all funding required by Wichita Bio in connection with the acceptance for payment of the Common and Preferred Shares on July 10, 2007 from cash on hand.

As an inducement to enter into the Merger Agreement, and in consideration thereof, Genzyme and Wichita Bio entered into Tender and Voting Agreements (each, a “Tender and Voting Agreement”), dated as of the date of the Merger Agreement, with each of Perseus-Soros Biopharmaceutical Fund L.P., Andrew Schiff, Christopher Wood, David Luci, Hugh Griffith, Ian Abercrombie, James Scibetta, Joseph Cooper, Kristen Dunker, Michael Kauffman, Robert Sterling, Steven Elms and Thomas Scott Nelson (each, a “Stockholder” and, collectively, the “Stockholders”).  Pursuant to the Tender and Voting Agreements, the Stockholders tendered 5,434,409 Common Shares (representing 9.9% of the 55,035,740 outstanding Common Shares as of June 27, 2007) and 2,250,000 Preferred Shares (representing 100% of the outstanding Preferred Shares as of June 27, 2007).  As of July 10, 2007, the Stockholders held options to purchase 5,058,575 Common Shares and warrants to purchase 75,009 Common Shares (the “Stockholders’ Options and Warrants”).

Pursuant to the Tender and Voting Agreements, each Stockholder granted to each of Genzyme and Wichita Bio an irrevocable option to purchase the Common Shares and Preferred Shares held by such Stockholder, and any or all Common Shares issued or issuable upon the exercise of any options or warrants, subject to the terms of the Tender and Voting Agreement, for a purchase price equal to the Common Stock Offer Price for the Common Shares and the Preferred Stock Offer Price for the Preferred Shares.  In addition, pursuant to the Tender and Voting Agreement, each of the Stockholders agreed to, at any meeting of the stockholders of Bioenvision however called (or any action by written consent in lieu of a meeting) with respect to the Merger or the Merger Agreement or any adjournment thereof, appoint Genzyme as proxy for the Stockholder to vote and exercise all voting and related rights of such Stockholder of its beneficially held Common Shares and Preferred Shares in favor of the adoption and approval by Bioenvision of the Merger and the Merger Agreement and each of the transactions contemplated thereby.

Shared dispositive power with respect to the Stockholders’ Options and Warrants may be deemed to have been acquired through execution of the Tender and Voting Agreements. Genzyme has not expended any funds in connection with the execution of the Tender and Voting Agreements, except for the transaction expenses (funded from Genzyme’s working capital) otherwise to be incurred in connection with the Offer and the Merger.

Genzyme and Wichita Bio estimate that the total cash amount required to purchase the Shares tendered pursuant to the Offer and to cover estimated fees and expenses will be approximately U.S. $80,000,000. Genzyme or one of its affiliates will provide all remaining funding required by Wichita Bio in connection with the Merger from cash on hand.

A copy of the Merger Agreement is attached is included as Exhibit 2 to this Schedule 13D. A form of the Tender and Voting Agreement is included as Annex II to the Merger Agreement.  References to, and descriptions of, the Merger Agreement and the Tender and Voting Agreements as set forth above in this Item 3 are qualified in their entirety by reference to the copies of the Merger Agreement and the form of Tender and Voting Agreement included as Exhibit 2 to this Schedule 13D and which are incorporated herein in their entirety by this reference.  The information set forth and/or incorporated by reference in Item 6 is hereby incorporated by reference into this Item 3.

 




 

CUSIP No. 09059N100

SCHEDULE 13D

Page 6 of 9

 

Item 4.

Purpose of Transaction

 

The information set forth and/or incorporated by reference in Items 2 and 3 is hereby incorporated by reference into this Item 4.

The purpose of entering into the Merger Agreement and the Tender and Voting Agreements, and the purpose of the Offer, was to enable the Reporting Persons to acquire control of, and ultimately the entire equity interest in, Bioenvision. On July 2, 2007, pursuant to the Merger Agreement, the Reporting Persons (a) waived the condition that there be validly tendered and not withdrawn prior to the Expiration Date that number of Common Shares which represents a majority of the issued and outstanding Common Shares (assuming, for purposes of such calculation, the exercise or conversion of all vested “in the money” options and “in the money” warrants) and (b) extended the Expiration Date until 12:01 a.m., New York City time, on July 10, 2007. As of 12:01 a.m., New York City time, on July 10, 2007, a total of 8,398,098 Common Shares and 2,250,000 Preferred Shares were validly tendered and not withdrawn, representing approximately 15.3% of the 55,035,740 outstanding Common Shares and 100% of the outstanding Preferred Shares, both as of June 27, 2007.

On September 27, 2007, Genzyme delivered a letter to Bioenvision’s board of directors confirming that it would not change the merger consideration of $5.60 in cash per outstanding common share as set forth in the Merger Agreement. A copy of the letter is attached hereto as Exhibit 3 and is incorporated herein by reference.  On the same day, Genzyme also issued a press release, again confirming that it would not change the merger consideration as set forth in the Merger Agreement.  A copy of the press release is attached hereto as Exhibit 4 and also is incorporated herein by reference.

The Reporting Persons expect that they and Bioenvision will pursue the Merger pursuant to the Merger Agreement.  Bioenvision called a special meeting of its stockholders to be held on October 4, 2007 to vote on the adoption of the Merger Agreement.  Since the Reporting Persons acquired less shares than required to adopt the Merger Agreement, there is no assurance that the Merger Agreement will be adopted.  If the Merger Agreement is not adopted, the Reporting Persons may dispose of Bioenvision securities either in the open market or in private transactions, depending on Bioenvision’s business, prospects and financial condition, the market for the Bioenvision’s securities, general economic conditions, money and stock market conditions and other future developments.  Subject to the terms of the Merger Agreement and Bioenvision’s shareholder rights plan, as well as Bioenvision’s business, prospects and financial condition, the market for the Bioenvision’s securities, general economic conditions, money and stock market conditions and other future developments, the Reporting Persons may make additional acquisitions of Bioenvision securities prior to the Bioenvision shareholder meeting to vote on the Merger or, if the Merger Agreement is not adopted, following such meeting.  The Reporting Persons may also hold discussions with third parties or with management in which the Reporting Persons may suggest or take a position with respect to potential changes in the operations, management or capital structure of Bioenvision as a means of enhancing shareholder value.  The Reporting Persons may also convert the Preferred Shares into Common Shares at an approximately two-to-one ratio or exercise the rights and powers of the Preferred Shares, including requiring a separate class vote to approve, among other things, any merger or business combination of Bioenvision or to approve the authorization of any additional Common Shares.  The Reporting Persons’ suggestions, positions or actions may relate to one or more of the transactions specified in clauses (a) through (j) of Item 4 of Schedule 13D including, without limitation, such matters as disposing of one or more businesses, selling the company or acquiring another company or business, changing operating or marketing strategies, adopting, not adopting, or rescinding certain types of anti-takeover measures, including Bioenvision’s shareholder rights plan, or restructuring the company’s capitalization.

The Merger Agreement provides that during the period from the date of the Merger Agreement until the earlier of the termination of the Merger Agreement pursuant to its terms or the consummation of the Merger, Bioenvision will, except to the extent that Genzyme otherwise consents in writing and except as otherwise expressly provided in the Merger Agreement, carry on its business in the ordinary course, in substantially the same manner as it was conducted prior to signing the Merger Agreement and in compliance in all material respects with all applicable laws and regulations, pay its debts and taxes when due, subject to good faith disputes over such debts and taxes, and pay or perform other material obligations when due.  Without limiting the generality of the foregoing, without the prior written consent of Genzyme and except as otherwise specifically provided in the Merger Agreement, during the period from the date of the Merger Agreement and continuing until the earlier of the termination of the Merger Agreement pursuant to its terms or the consummation of the Merger, Bioenvision has agreed to observe the following covenants: (i) use its reasonable commercial efforts to preserve intact and keep available the services of present employees of Bioenvision and its subsidiaries; (ii) use reasonable commercial efforts to keep in effect casualty, product liability, workers’ compensation and other insurance policies in coverage amounts substantially similar to those in effect at the date of the Merger Agreement; (iii) use reasonable efforts to preserve the business of Bioenvision, to develop, commercialize and pursue regulatory approvals for its product candidates and products and to advertise, promote and market its products, and use reasonable commercial efforts to keep its properties substantially intact, to preserve its goodwill and business, to maintain all physical properties in such operating condition as will permit the conduct of its business on a basis consistent with past practice, and to perform and comply in all material respects with the terms of its material contracts; (iv) use its reasonable best efforts to preserve and protect its intellectual property; (v) take all reasonable actions necessary with respect to outstanding options and warrants to effectuate the terms of the Merger Agreement; and (vi) notify and consult with Genzyme promptly (A) after receipt of any material communication from any governmental entity or inspections of any manufacturing or clinical trial site and before giving any material submission to a governmental entity, and (B) prior to making any material change to a study protocol, adding new trials, making any material change to a manufacturing plan or process, or making a material change to the development timeline for any of its product candidates or programs.

 




 

CUSIP No. 09059N100

SCHEDULE 13D

Page 7 of 9

 

 

If the Merger is consummated, Genzyme intends to conduct a review of Bioenvision’s operations and business strategy with a view to determining how best to combine Bioenvision’s operations with those of Genzyme in order to streamline the commercialization of Bioenvision’s products and product candidates and to optimize operational effectiveness. Genzyme also plans to assess the various opportunities and risks associated with Bioenvision’s ongoing research and development efforts. Following a detailed assessment of the potential value of these programs, Genzyme will determine whether additional investment or dedication of resources is warranted.  If the Merger is not consummated, Genzyme does not intend to conduct such a review.

If permitted by applicable law, subsequent to the completion of the Merger, the Reporting Persons intend to delist the Common Shares from The Nasdaq Global Market. The Reporting Persons also intend to seek to cause Bioenvision to apply for termination of registration of the Common Shares under the Act, as soon after the completion of the Offer as the requirements for such termination are met.

Except as otherwise set forth in this Schedule 13D, the Reporting Persons do not have any present plans, arrangements or understandings that relate to or would result in:

a)             The acquisition by any person of additional securities of the issuer, or the disposition of securities of the issuer;

b)            An extraordinary corporate transaction, such as a merger, reorganization or liquidation, involving the issuer or any of its subsidiaries;

c)             A sale or transfer of a material amount of assets of the issuer or any of its subsidiaries;

d)            Any change in the present board of directors or management of the issuer, including any plans or proposals to change the number or term of directors or to fill any existing vacancies on the board;

e)             Any material change in the present capitalization or dividend policy of the issuer;

f)             Any other material change in the issuer’s business or corporate structure including but not limited to, if the issuer is a registered closed-end investment company, any plans or proposals to make any changes in its investment policy for which a vote is required by section 13 of the Investment Company Act of 1940;

g)            Changes in the issuer’s charter, bylaws or instruments corresponding thereto or other actions which may impede the acquisition of control of the issuer by any person;

h)            Causing a class of securities of the issuer to be delisted from a national securities exchange or to cease to be authorized to be quoted in an inter-dealer quotation system of a registered national securities association;

i)              A class of equity securities of the issuer becoming eligible for termination of registration pursuant to Section 12(g)(4) of the Act; or

j)              Any action similar to any of those enumerated above.

 

 

 




 

CUSIP No. 09059N100

SCHEDULE 13D

Page 8 of 9

 

Item 5.

Interest in Securities of the Issuer

 

The information set forth and/or incorporated by reference in Items 2, 3 and 4 is hereby incorporated by reference into this Item 5.

a)             As of the date hereof, the Reporting Persons own 8,398,098 Common Shares (representing 15.3% of the 55,035,740 outstanding Common Shares as of June 27, 2007) and 2,250,000 Preferred Shares (representing 100% of the outstanding Preferred Shares as of June 27, 2007).  Additionally, for purposes of Rule 13d-3 under the Exchange Act, as a result of entering into the Tender and Voting Agreements, the Reporting Persons may also be deemed to possess beneficial ownership of the Stockholders’ Options and Warrants (5,058,575 options to purchase Common Stock and 75,009 warrants to purchase Common Stock). Therefore, the Reporting Persons may be deemed to beneficially own an aggregate of 18,031,682 Common Shares, representing approximately 27.9% of the fully diluted outstanding shares (assuming exercise of Stockholders’ Options and Warrants and conversion of the Preferred Shares with no accrued but unpaid dividends). The Reporting Persons and the other persons listed on Schedule I hereto, however, disclaim beneficial ownership of the Stockholders’ Options and Warrants, and this statement shall not be construed as an admission the Reporting Persons or those listed on Schedule I hereto is the beneficial owner for any purpose of the Stockholders’ Options and Warrants.

Except as set forth in this Schedule 13D, to the best of Genzyme’s knowledge as of the date hereof, neither Genzyme nor any of its directors and executive officers named in Schedule I hereto owns any Bioenvision Shares.  Except as set forth in this Schedule 13D, to the best of Wichita Bio’s knowledge as of the date hereof, neither Wichita Bio nor any of its directors and executive officers named in Schedule I hereto owns any Bioenvision Shares.

b)            As of the date hereof, the Reporting Persons have acquired the sole power to vote or direct the vote and to dispose or direct the disposition of 8,398,098 Common Shares and 2,250,000 Preferred Shares. For purposes of Rule 13d-3 under the Exchange Act, as a result of entering into the Tender and Voting Agreements, the Reporting Persons may also be deemed to have acquired the shared power to vote or direct the vote and to dispose or to direct the disposition of the Common Shares underlying the Stockholders’ Options and Warrants. Therefore, the Reporting Persons may be deemed to have acquired the shared power to vote or direct the vote and to dispose or to direct the disposition of an aggregate of 18,031,682 Common Shares, representing approximately 27.9% of the fully diluted outstanding shares (assuming exercise of Stockholders’ Options and Warrants and conversion of the Preferred Shares with no accrued but unpaid dividends).

c)             Except for the transactions described herein, to the best of Genzyme’s knowledge as of the date hereof, neither Genzyme nor any of its directors and executive officers named in Schedule I hereto has effected any transaction in Bioenvision Shares during the past 60 days.  Except for the transactions described herein, to the best of Wichita Bio’s knowledge as of the date hereof, neither Wichita Bio nor any of its directors and executive officers named in Schedule I hereto has effected any transaction in Bioenvision Shares during the past 60 days.

d)            Other than the persons named in Schedule I hereto, to the best of the Reporting Persons’ knowledge as of the date hereof, neither the Reporting Persons nor the Reporting Persons’ directors and executive officers named in Schedule I hereto has or knows any other person who has the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, any Bioenvision Shares beneficially owned by the Reporting Persons. Other than the Stockholders identified in Item 3 that are party to the Tender and Voting Agreements in the form of Annex II to Exhibit 2 to this Schedule 13D and incorporated herein by reference, to the best of the Reporting Persons’ knowledge as of the date hereof, neither the Reporting Persons nor the Reporting Persons’ directors and executive officers named in Schedule I hereto has or knows any other person who has the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, any Common Shares underlying the Stockholders’ Options and Warrants beneficially owned by the Reporting Persons.

 

 

 




 

CUSIP No. 09059N100

SCHEDULE 13D

Page 9 of 9

 

Item 6.

Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer

 

The information set forth and/or incorporated by reference in Items 2 through 5 is hereby incorporated by reference into this Item 6.

As described in Item 3, on May 29, 2007, the Reporting Persons entered into the Tender and Voting Agreements with the Stockholders. During the term of the Tender and Voting Agreement, except as otherwise provided therein, each Stockholder agreed not to: (i) directly or indirectly, sell, transfer, assign, pledge, hypothecate, tender, encumber or otherwise dispose of or limit its right to vote in any manner any of the Bioenvision Shares, or agree to do any of the foregoing; (ii) take any action which would have the effect of preventing or disabling a Stockholder from performing its obligations under the Tender and Voting Agreement; and (iii) subject to certain covenants applicable to Bioenvision, (a) solicit, initiate or encourage the submission of any acquisition proposal or of any other sale, transfer, pledge or other disposition or conversion of any Bioenvision Shares or of any of the other debt or equity securities of Bioenvision, or (b) participate in or knowingly encourage any discussions or negotiations regarding, or furnish to any person any non-public information with respect to, enter into any agreement with respect to, or take any other action to facilitate any inquiries or the making of any proposal that constitutes, or may reasonably be expected to lead to, any acquisition proposal or any other sale, transfer, pledge or other disposition or conversion of any Bioenvision Shares or of any of the other debt or equity securities of Bioenvision, in any case, from, to or with any person other than Wichita Bio or Genzyme. Each Stockholder further agreed to immediately cease and cause to be terminated any existing activities, discussions or negotiations with any such other parties conducted heretofore with respect to any of the foregoing and to notify Genzyme immediately if any party contacts the Stockholder following the date of the Tender and Voting Agreement (other than Wichita Bio or Genzyme) concerning any acquisition proposal or any other sale, transfer, pledge or other disposition or conversion of any Bioenvision Shares or of any of the other debt or equity securities of Bioenvision.

Except for the agreements described above, to the knowledge of Genzyme and Wichita Bio, there are no contracts, arrangements, understandings or relationships (legal or otherwise), including, but not limited to, transfer or voting of any of the securities, 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, between the persons enumerated in Item 2, and any other person, with respect to any securities of Bioenvision, including any securities pledged or otherwise subject to a contingency the occurrence of which would give another person voting power or investment power over such securities other than standard default and similar provisions contained in loan agreements.

References to, and descriptions of, the Merger Agreement and the Tender and Voting Agreements as set forth above in this Item 6 are qualified in their entirety by reference to the copies of the Merger Agreement and the Form of Tender and Voting Agreements included as Exhibit 2 to this Schedule 13D and which is incorporated herein in its entirety by this reference.

 

 

Item 7.

Material to Be Filed as Exhibits

 

 

Exhibit

 

Description

 

 

 

 

 

 

 

1

 

Joint Filing Agreement, between Genzyme Corporation and Wichita Bio Corporation, dated June 8, 2007.*

 

 

 

 

 

 

 

2

 

Agreement and Plan of Merger, by and among Genzyme Corporation, Bioenvision, Inc. and Wichita Bio Corporation, dated May 29, 2007.*

 

 

 

 

 

 

 

3

 

September 27, 2007 Letter from Genzyme Corporation to the Board of Directors of Bioenvision, Inc.

 

 

 

 

 

 

 

4

 

Press Release of Genzyme Corporation dated September 27, 2007.


*       Incorporated by reference to the statement on Schedule 13D filed by the Reporting Persons on June 8, 2007

 




 

SIGNATURE

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: September 27, 2007

 

 

 

 

 

 

GENZYME CORPORATION

 

 

 

 

By:

/s/ EARL M. COLLIER, JR.

 

 

Name:

Earl M. Collier, Jr.

 

 

Title:

Executive Vice President

 

 

 

 

 

 

 

 

 

WICHITA BIO CORPORATION

 

 

 

 

 

 

 

 

 

By:

/s/ EARL M. COLLIER, JR.

 

 

Name:

Earl M. Collier, Jr.

 

 

Title:

President

 




 

SCHEDULE 1

DIRECTORS AND EXECUTIVE OFFICERS OF GENZYME CORPORATION

Set forth below is the name, present principal occupation or employment and the name, principal business and address of any corporation or other organization in which such employment is conducted for each director and executive officer of Genzyme.  Unless otherwise indicated, each individual is a citizen of the United States, and his or her business address is c/o Genzyme Corporation, 500 Kendall Street, Cambridge, MA 02142.

Directors

Henri A. Termeer
Chairman of the Board, President and Chief Executive Officer
Genzyme Corporation

Douglas A. Berthiaume
President and Chief Executive Officer
Waters Corporation (high technology manufacturer of high performance liquid chromatography instrumentation and consumables, and thermal analysis and mass spectrometry products used for analysis and purification)
34 Maple Street
Milford, Massachusetts  01757

Gail Koziara Boudreaux
Executive Vice President
Health Care Service Corporation
300 East Randolph Street
Chicago, Illinois 60601

Robert J. Carpenter
Executive Chairman of the Board
Peptimmune, Inc.
64 Sidney Street
Cambridge, Massachusetts 02139

Charles L. Cooney
Professor of Chemical and Biochemical Engineering
Massachusetts Institute of Technology
Room 56-469B
77 Massachusetts Avenue
Cambridge, Massachusetts 02139

Victor J. Dzau
Chancellor for Health Affairs and President and Chief Executive Officer
Duke University Medical Center and Health System
106 Davidson Building
Durham, North Carolina 27710

Connie Mack III
Senior Policy Advisor and Co-Chairman of the Government Relations Practice Group
King & Spalding LLP
1700 Pennsylvania Avenue, NW, Suite 200
Washington, DC 20006




 

Richard F. Syron
Chairman and Chief Executive Officer
Federal Home Loan Mortgage Corporation
8200 Jones Branch Drive
McLean, Virginia 22102

Executive Officers

Henri A. Termeer
Chairman of the Board, President and Chief Executive Officer
(See Above)

Earl M. Collier, Jr.
Executive Vice President, Cardiovascular and Oncology

Zoltan A. Csimma
Chief Human Resources Officer; Senior Vice President

Georges Gemayel, Ph.D.
Executive Vice President, Therapeutics

Richard A. Moscicki, M.D.
Chief Medical Officer; Senior Vice President, Clinical, Medical and Regulatory Affairs

Alan E. Smith, Ph.D.
Chief Scientific Officer; Senior Vice President, Research

Sandford D. Smith
Executive Vice President; President, International Group

Peter Wirth
Chief Legal Officer; Executive Vice President, Legal and Corporate Development; Secretary

Michael S. Wyzga
Chief Financial and Accounting Officer; Executive Vice President, Finance




 

DIRECTORS AND EXECUTIVE OFFICERS OF WICHITA BIO CORP.

Set forth below is the name, present principal occupation or employment and the name, principal business and address of any corporation or other organization in which such employment is conducted for each director and executive officer of Wichita Bio.  Unless otherwise indicated, each individual is a citizen of the United States, and his or her business address is c/o Genzyme Corporation, 500 Kendall Street, Cambridge, MA 02142.

Directors

Henri A. Termeer
See above, under “Directors and Executive Officers of Genzyme Corporation”

Peter Wirth
See above, under “Directors and Executive Officers of Genzyme Corporation”

Executive Officers

Henri A. Termeer, Chief Executive Officer

Earl M. Collier, Jr., President

Michael S. Wyzga, Vice President & Treasurer

Peter Wirth, Vice President & Secretary

Mark J. Enyedy, Vice President



EX-3 2 a07-24768_1ex3.htm EX-3

 

Exhibit 3

September 27, 2007

Bioenvision, Inc.
Board of Directors
345 Park Avenue
41
st Floor
New York, New York 10154

Gentlemen:

In light of the recent reports from Institutional Shareholder Services (ISS) and Glass Lewis, we want to put an end to any speculation that we might raise our offer and to reiterate our commitment to the $5.60 per share cash purchase price set forth in the merger agreement between Bioenvision and Genzyme.  We have a comprehensive understanding of clofarabine’s potential and thoroughly analyzed the value of Bioenvision prior to entering into the transaction in May.  We believed $5.60 per share was a full and fair price for the company then, and we believe that to be the case now, as supported by the following points.

1.             The merger consideration of $5.60 per share represents a substantial premium and the best price obtainable for Bioenvision.  By all reasonable economic measures, $5.60 per share represents full and fair value, especially in light of Bioenvision’s announcement subsequent to our offer that clofarabine will not be approved in adult AML in the EU until 2008, at the earliest.  In addition, the $5.60 per share represents a premium of approximately:

·                  49% over $3.75, the price at which Bioenvision priced its registered direct offering of 8 million shares of common stock in April 2007;

·                  44% over $3.89, the average 60 trading day average of Bioenvision’s common stock on Nasdaq as of the last trading day prior to the execution of the merger agreement; and

·                  34% over $4.18, the average 90 trading day average of Bioenvision’s common stock on Nasdaq as of the last trading day prior to the execution of the merger agreement.

Your financial advisor, UBS, has also confirmed that $5.60 per share is a fair price.  To reach this conclusion, UBS performed a discounted cash flow analysis that resulted in an implied equity reference range for Bioenvision of approximately $3.72 to $5.33 per share.  Indeed, the $5.60 per share cash offer is higher than the high end of your advisor’s valuation range.

In addition, UBS compared financial and stock market data of Bioenvision with the corresponding public data of 9 other publicly-traded companies in the biopharmaceutical industry which indicated that $5.60 per share cash consideration exceeded both the mean and median implied revenue multiple ranges for these comparable companies.  UBS also compared the financial terms of the Genzyme transaction with the publicly available financial terms of 16

www.genzyme.com




 

Bioenvision, Inc.

Board of Directors

September 27, 2007

Page 2

selected transactions UBS believed to be generally relevant, which indicated that $5.60 per share cash consideration payable by Genzyme exceeded the mean and median implied forward revenue multiple ranges for the selected transactions.

2.             Bioenvision has never received another firm offer regarding the sale of the company.  Although Bioenvision has continually sought to be acquired over the past four years, no third party acquirer has ever submitted a firm offer to purchase the company.  Over the past 18 months alone, UBS contacted over 20 target companies to find possible suitors.  Of the handful that expressed interest and conducted due diligence, none submitted a firm offer to purchase the company.  Indeed, some of the potential suitors declined with explicit reference to due diligence concerns.  In connection with Genzyme’s indication of interest in the spring of 2007, UBS again contacted 10 target companies to solicit interest in acquiring Bioenvision, yet no proposals were received.  Moreover, since the announcement of the Genzyme transaction, Bioenvision has not received any indication, or even a suggestion, of interest from any third party regarding purchase of the company.

3.             The risks associated with Bioenvision remaining an independent company are significant.

·                  Bioenvision will not receive regulatory approval for clofarabine in adult AML in the EU in 2007 and approval in 2008 is uncertain.  The EMEA has requested that data from the ongoing AML-16 trials be provided to support Bioenvision’s application for approval.  The AML-16 trial will not be fully enrolled at the time that Bioenvision’s response is due to the EMEA, and there can be no assurances that interim data will be satisfactory, or that the data itself will be supportive of Bioenvision’s application.  Further, if the EMEA does not accept this data, Bioenvision may well have to complete an additional randomized, pivotal study.  Moreover, AML-16 is not a Bioenvision-sponsored study, and there can be no assurance that the investigators will make this data available to Bioenvision for use in its application.

·                  Bioenvision must raise significant additional capital to fund operations until it is generating positive cash flow.  Management’s projections (which were not available to the market in May when the transaction was first announced) show that Bioenvision does not expect to be profitable until 2012, expects to generate more than $100 million in operating losses in the interim and, therefore, will require substantial additional external financing in an uncertain market.  Bioenvision’s most recent experience, undertaken in more favorable market conditions than now exist, show how dilutive the raising of this amount of capital can be.  Furthermore, these projections do not include any amounts associated with defending or losing any of the several shareholder lawsuits now pending against Bioenvision.

·                  Bioenvision’s revenues in the EU are highly concentrated at one clinical trial site.  There are risks inherent in the concentration of Bioenvision’s revenue derived from its supply of clofarabine at current market prices to the AML-16 study centers, which is being coordinated through a single trial center, Cardiff University.  During the nine months ended March 31, 2007, 46% of Bioenvision’s clofarabine revenue was from the sale of clofarabine to Cardiff.  During the three months ended September 30, 2006, December 31, 2006 and March 31, 2007, revenue from Cardiff accounted for 52%, 48% and 41% of total clofarabine revenue, respectively.




 

Bioenvision, Inc.

Board of Directors

September 27, 2007

Page 3

·                  Bioenvision is engulfed in a series of new lawsuits.  As with any litigation, regardless of the merits, defending these claims will drain a significant amount of resources, both in personnel as well as capital.  At a critical juncture in the company’s history, such diversions will likely impact the company’s necessary focus on commercial operations and could possibly be debilitating.

·                  Bioenvision will face other significant challenges to expand clofarabine into new indications and markets, most immediately, adult AML.  Bioenvision has very limited development and commercial experience and requires:

·                  broader development and medical affairs expertise to manage international clinical studies, obtain regulatory approvals and support patient management;

·                  dedicated commercial resources capable of educating and updating physicians on the benefits and risks of clofarabine use in multiple patient populations;

·                  global reimbursement, pricing and government affairs capabilities to implement and maintain Bioenvision’s pricing strategy; and

·                  an adequate supply of drug substance for the development and commercialization of clofarabine outside of the United States (as Genzyme has the exclusive rights, even as to Bioenvision, to manufacture the product in North America).

To the extent Bioenvision cannot build these capabilities internally, it will be required to rely upon marketing partners, distributors and third party contractors, as has been the case.  As the number of these relationships increase, the value of Bioenvision as a whole will likely erode due to transaction costs as well as delays, inexperience of third parties, and sharing of economic benefits.

In summary, while Bioenvison has brought clofarabine to an early plateau in its development, management and shareholders face enormously complex and expensive challenges to move the product and the company to a next level of valuation.  It is, of course, for that reason that you approved the merger agreement and have unanimously recommended your stockholders do likewise.  And it is for this reason that we cannot and will not pay any more than the $5.60 contemplated by that merger agreement.

Sincerely,

Mark J. Enyedy

Cc:                               Henri A. Termeer
Earl M. Collier, Jr.
Peter Wirth
Blaine H. McKee
Thomas W. Beetham
Andrew J. Weisenfeld (Banc of America Securities)
Paul Kinsella (Ropes & Gray LLP)



EX-4 3 a07-24768_1ex4.htm EX-4

 

Exhibit 4

For Immediate Release

Investors

Media

September 27, 2007

Catherine Forte

Maria Cantor

 

(617) 768-6881

(617) 768-6690

 

Genzyme Affirms Purchase Price for Bioenvision at $5.60
Per Outstanding Share

CAMBRIDGE, Mass — Genzyme Corporation (Nasdaq: GENZ) confirmed today that it will not change its purchase price for Bioenvision (Nasdaq:  BIVN) at $5.60 in cash per outstanding common share as set forth in the merger agreement between the two companies.  Genzyme already owns approximately 22 percent of the outstanding shares of Bioenvision common stock on an as-converted basis, including 100 percent of its preferred stock that carry a unique set of rights and privileges.

“$5.60 per share is our best and final offer,” stated Mark J. Enyedy, president of Genzyme Oncology, a business unit of Genzyme Corporation.  “It reflects the full and fair value for Bioenvision common stock based on our extensive due diligence on the company, and our detailed understanding of the risks associated with, and investment required for, the further development of clofarabine.  We now all know that clofarabine will not be approved in adult AML in the European Union until 2008, at the earliest.”

Genzyme added that the merger agreement represents the culmination of a thorough auction process undertaken by the Bioenvision Board of Directors, during which more than 20 companies were contacted regarding a potential sale of the




 

Genzyme Corp. Affirms Offer Price to Purchase Bioenvision  page 2

company.  No other offer was made prior to or following the announcement of the merger agreement with Genzyme.

Genzyme also noted several of the risks associated with Bioenvision remaining an independent public company have been made public through company disclosures in recent weeks, including the need to finance more than $100 million in operating losses through 2011.  In addition, since the merger agreement was signed in May, capital market conditions have deteriorated and Bioenvision has become subject to several potentially costly lawsuits.

Genzyme today sent a letter to the Board of Directors of Bioenvision confirming its position on price and the factors supporting this position.  Genzyme included that letter as an exhibit to an amendment to the Schedule 13D it has filed with the Securities and Exchange Commission in connection with its ownership of Bioenvision capital stock.

The merger agreement received unanimous support from the Bioenvision board of directors.  Earlier this month, the company mailed a proxy statement to its shareholders detailing the rationale for the merger and other material disclosures.  A special meeting of Bioenvision’s shareholders to vote on the merger with Genzyme is scheduled for next Thursday, October 4.   Should Genzyme not garner the majority support from shareholders for this merger, it is committed to playing an active and constructive role as a significant long-term shareholder of Bioenvision.

About Genzyme

One of the world’s leading biotechnology companies, Genzyme is dedicated to making a major positive impact on the lives of people with serious diseases. Since




 

Genzyme Corp. Affirms Offer Price to Purchase Bioenvision  page 3

1981, the company has grown from a small start-up to a diversified enterprise with more than 9,500 employees in locations spanning the globe and 2006 revenues of $3.2 billion. In 2007, Genzyme was chosen to receive the National Medal of Technology, the highest honor awarded by the President of the United States for technological innovation. In 2006 and 2007, Genzyme was selected by FORTUNE as one of the “100 Best Companies to Work for” in the United States.

With many established products and services helping patients in nearly 90 countries, Genzyme is a leader in the effort to develop and apply the most advanced technologies in the life sciences. The company’s products and services are focused on rare inherited disorders, kidney disease, orthopaedics, cancer, transplant, and diagnostic testing. Genzyme’s commitment to innovation continues today with a substantial development program focused on these fields, as well as immune disease, infectious disease, and other areas of unmet medical need.

# # #

Genzyme® is a registered trademark of Genzyme Corporation.  All rights reserved.

Genzyme’s press releases and other company information are available at www.genzyme.com and by calling Genzyme’s investor information line at 1-800-905-4369 within the United States, or 1-678-999-4572 outside the United States.



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