-----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, J0y5TD9fChZGrq/Px3QIvvwQKBfPswVdcSSyRSJI1si3CiZlOJfh2y5rZziVYUee jcmMQtjtB+Yuo3ibbLpV+w== 0000950172-96-000846.txt : 19961217 0000950172-96-000846.hdr.sgml : 19961217 ACCESSION NUMBER: 0000950172-96-000846 CONFORMED SUBMISSION TYPE: SC 14D1/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 19961216 SROS: NONE GROUP MEMBERS: UNITED STATES SURGICAL CORP GROUP MEMBERS: USS ACQUISITION CORP. SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: CIRCON CORP CENTRAL INDEX KEY: 0000719727 STANDARD INDUSTRIAL CLASSIFICATION: ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845] IRS NUMBER: 953079904 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-36096 FILM NUMBER: 96681478 BUSINESS ADDRESS: STREET 1: 6500 HOLLISTER AVE CITY: SANTA BARBARA STATE: CA ZIP: 93111 BUSINESS PHONE: 8059670404 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: CIRCON CORP CENTRAL INDEX KEY: 0000719727 STANDARD INDUSTRIAL CLASSIFICATION: ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845] IRS NUMBER: 953079904 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 14D1/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-36096 FILM NUMBER: 96681479 BUSINESS ADDRESS: STREET 1: 6500 HOLLISTER AVE CITY: SANTA BARBARA STATE: CA ZIP: 93111 BUSINESS PHONE: 8059670404 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: UNITED STATES SURGICAL CORP CENTRAL INDEX KEY: 0000101788 STANDARD INDUSTRIAL CLASSIFICATION: SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841] IRS NUMBER: 132518270 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 14D1/A BUSINESS ADDRESS: STREET 1: 150 GLOVER AVE CITY: NORWALK STATE: CT ZIP: 06856 BUSINESS PHONE: 2038451000 MAIL ADDRESS: STREET 1: 150 GLOVER AVENUE CITY: NORWALK STATE: CT ZIP: 06856 FORMER COMPANY: FORMER CONFORMED NAME: AUTO SUTURE SURGICAL CORP DATE OF NAME CHANGE: 19700507 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: UNITED STATES SURGICAL CORP CENTRAL INDEX KEY: 0000101788 STANDARD INDUSTRIAL CLASSIFICATION: SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841] IRS NUMBER: 132518270 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 14D1/A BUSINESS ADDRESS: STREET 1: 150 GLOVER AVE CITY: NORWALK STATE: CT ZIP: 06856 BUSINESS PHONE: 2038451000 MAIL ADDRESS: STREET 1: 150 GLOVER AVENUE CITY: NORWALK STATE: CT ZIP: 06856 FORMER COMPANY: FORMER CONFORMED NAME: AUTO SUTURE SURGICAL CORP DATE OF NAME CHANGE: 19700507 SC 14D1/A 1 SCHEDULE 14D1 AMENDMENT NO. 8 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 14D-1 AMENDMENT NO. 8 TENDER OFFER STATEMENT PURSUANT TO SECTION 14(D)(1) OF THE SECURITIES EXCHANGE ACT OF 1934 AND SCHEDULE 13D AMENDMENT NO. 8 UNDER THE SECURITIES EXCHANGE ACT OF 1934 CIRCON CORPORATION (NAME OF SUBJECT COMPANY) USS ACQUISITION CORP. UNITED STATES SURGICAL CORPORATION (BIDDERS) COMMON STOCK, PAR VALUE $0.01 PER SHARE (INCLUDING THE ASSOCIATED PREFERRED SHARE PURCHASE RIGHTS) (TITLE OF CLASS OF SECURITIES) 172736 10 0 (CUSIP NUMBER OF CLASS OF SECURITIES) THOMAS R. BREMER USS ACQUISITION CORP. C/O UNITED STATES SURGICAL CORPORATION 150 GLOVER AVENUE NORWALK, CONNECTICUT 06856 TELEPHONE: (203) 845-1000 (NAME, ADDRESS AND TELEPHONE NUMBER OF PERSON AUTHORIZED TO RECEIVE NOTICES AND COMMUNICATIONS ON BEHALF OF BIDDERS) with a copy to: PAUL T. SCHNELL, ESQ. SKADDEN, ARPS, SLATE, MEAGHER & FLOM 919 THIRD AVENUE NEW YORK, NEW YORK 10022 TELEPHONE: (212) 735-3000 United States Surgical Corporation, a Delaware corporation ("Parent"), and USS Acquisition Corp., a Delaware corporation (the "Purchaser"), and a wholly owned subsidiary of Parent, hereby further amend and supplement their Statement on Schedule 14D-1 ("Schedule 14D-1"), filed with the Securities and Exchange Commission (the "Commission") on August 2, 1996, as amended by Amendment No.1 dated August 16, 1996, Amendment No. 2 dated August 20, 1996, Amendment No.3 dated August 20, 1996, Amendment No. 4 dated August 30, 1996, Amendment No. 5 dated September 17, 1996, Amendment No. 6 dated September 18, 1996, and Amendment No. 7 dated October 1, 1996, with respect to the Purchaser's offer to purchase all of the outstanding shares of Common Stock, par value $0.01 per share (the "Shares"), of Circon Corporation, a Delaware corporation (the "Company"), together with any associated preferred stock purchase rights (the "Rights"), at a decreased price of $17.00 per Share (and associated Right), net to the seller in cash, without interest thereon, upon the terms and subject to the conditions set forth in the Offer to Purchase, dated August 2, 1996, as amended (the "Offer to Purchase"). This Amendment No. 8 to Schedule 14D-1 also constitutes Amendment No. 8 to the Statement on Schedule 13D of the Purchaser and Parent. The item numbers and responses thereto below are in accordance with the requirements of Schedule 14D-1. Unless otherwise indicated herein, each capitalized term used but not defined herein shall have the meaning assigned to such term in Schedule 14D-1 or in the Offer to Purchase referred to therein. ITEM 10. ADDITIONAL INFORMATION. Item 10(f) of Schedule 14D-1 is hereby amended and supplemented as follows: On December 16, 1996, Parent issued a press release, a copy of which is attached hereto as Exhibit (a)(18) and is incorporated herein by reference, relating to the extension of the Offer until 6:00 p.m., New York City time, on February 13, 1996, unless further extended, and the lowering of the Offer price to $17.00 per Share (and associated Right). ITEM 11. MATERIAL TO BE FILED AS EXHIBITS. (a)(18) Text of Press Release issued by United States Surgical Corporation on December 16, 1996. SIGNATURE 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: December 16, 1996 USS ACQUISITION CORP. By: /s/ THOMAS R. BREMER Name: Thomas R. Bremer Title: President UNITED STATES SURGICAL CORPORATION By: /s/ THOMAS R. BREMER Name: Thomas R. Bremer Title: Senior Vice President and General Counsel EXHIBIT INDEX EXHIBIT EXHIBIT NAME (a)(18) Text of Press Release issued by United States Surgical Corporation on December 16, 1996. EX-99 2 EXHIBIT (A)(18) - PRESS RELEASE Exhibit (a)(18) FOR IMMEDIATE RELEASE: December 16, 1996 INVESTOR CONTACT: U.S. SURGICAL HOME PAGE MEDIA CONTACT: Marianne Scipione http://www.ussurg.com Steve Rose Vice President Director Corporate Communications Media Relations 203-845-1404 203-845-1732 marianne.scipione@QMGATE.USSURG.COM steve.rose@QMGATE.USSURG.COM UNITED STATES SURGICAL CORPORATION EXTENDS TENDER OFFER TO ACQUIRE CIRCON; REDUCES PRICE TO $17 PER SHARE IN CASH NORWALK, Conn. -- United States Surgical Corporation (NYSE:USS) announced today that it is extending through 6:00 p.m., New York City time, February 13, 1997, its cash tender offer for all the outstanding common shares of Circon Corporation (NASDAQ:CCON) at a reduced price of $17 per share. On August 2, 1996, USS commenced an offer to Circon shareholders of $18 per share, representing a premium of 83% over the average closing price of Circon's common stock during the previous ten trading days. Leon C. Hirsch, chairman and CEO of USS, said, "With the passage of time, not only has Circon's management been unable to achieve better operating results, but Circon's performance continues to be below even historical levels. After adjusting for non recurring items, Circon's third quarter 1996 performance was well below that of third quarter 1995, based on its SEC filings, with revenues down 8.9%, gross profit down 9.1% and operating income down 53.4%. This performance demonstrates that Circon's management has been unable to deliver to their shareholders the turnaround it has been promising. Moreover, management has strapped its shareholders with an even greater burden through the heavy expenditure of $3.2 million for a defense-related charge." USS believes Circon's management would need to achieve extraordinary operating improvements in order for Circon's stock trading price to equal USS' offer; that seems highly unlikely given Circon's historical record. Assuming an industry average price/earnings ratio of 16 times, Circon management would need to deliver earnings per share (EPS) of $1.22 one year from now in order to equal the present value of today's $17 offer. To do this, Circon would need to improve operating margins to over 20% (vs. 6.1% today) at current sales levels, or increase sales to $500 million (an increase of 225% over the latest twelve months) at today's margins. Alternatively, if Circon improved both its sales and margins, Circon would, for example, still need to increase revenues by over 50% and more than double margins to over 13% to achieve EPS of $1.22 or achieve a combination of what USS believes are other equally improbable improvements. Shareholders rallied behind USS' $18 per share offer by tendering 80% of the shares of Circon's common stock not owned by Circon's management and Board, based on their 1996 June 10-Q and proxy statement. In response to the offer, Circon management decided it was paramount to protect its own interests and installed anti-takeover provisions, including a poison pill and potentially costly golden parachutes, and stated that USS' $18 per share offer did not reflect Circon's long term value and that management needed additional time to implement its operating plan. Mr. Hirsch stated further, "We still firmly believe this merger is in the best interest of both companies and their respective shareholders; however, recent results suggest that Circon's management has been unable to deliver to its shareholders improved financial performance. USS can no longer justify to its shareholders -- absent the ability to review and discuss with Circon's management its operating plan -- an offer of $18 per share and, therefore, is compelled to reduce its offer to $17 per share, a price which represents a 73% premium over Circon's average trading price for the ten trading days preceding our original offer. At $17 per share, Circon has a price/earnings ratio of over 100 times trailing twelve months' earnings. USS' tender offer is the major reason for this huge multiple. USS continues to be interested in meeting with Circon's management to give them an opportunity to demonstrate any additional value which should be considered in our offer." Within the past ten days, USS again offered to meet with Circon's management to discuss in detail proposals for the merger and USS' valuation of Circon. They refused such a meeting, stating that Circon was not for sale. As of 6:00 p.m. New York City time on December 13, 1996, 7,726,701 shares of Circon's outstanding common stock had been tendered to USS under the terms of the offer. The 7,726,701 shares tendered, plus the 1,000,100 shares previously purchased by USS, represent 79% of the shares of Circon's common stock not owned by Circon's management and Board, based on their 1996 September 10-Q and June proxy. United States Surgical Corporation is a diversified surgical products company specializing in minimally invasive technologies that improve patient care and lower health care costs. -----END PRIVACY-ENHANCED MESSAGE-----