-----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, NkbysKbf/6iWyeqUjHxPNDbV1MrEO/TwrYB52Hq4x0sA6OBMxO6kT2wX3ka6SdMe 2qpZ9ZkTiw99FxZrD93yKw== 0001015426-96-000011.txt : 19960928 0001015426-96-000011.hdr.sgml : 19960928 ACCESSION NUMBER: 0001015426-96-000011 CONFORMED SUBMISSION TYPE: DFAN14A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19960820 SROS: NASD SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: INTERNATIONAL JENSEN INC CENTRAL INDEX KEY: 0000853261 STANDARD INDUSTRIAL CLASSIFICATION: HOUSEHOLD AUDIO & VIDEO EQUIPMENT [3651] IRS NUMBER: 133346656 STATE OF INCORPORATION: DE FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: DFAN14A SEC ACT: 1934 Act SEC FILE NUMBER: 000-19779 FILM NUMBER: 96617976 BUSINESS ADDRESS: STREET 1: 25 TRI STATE INTERNATIONAL OFFICE CENTER STREET 2: STE 400 CITY: LINCOLNSHIRE STATE: IL ZIP: 60069 BUSINESS PHONE: 7083173700 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: EMERSON RADIO CORP CENTRAL INDEX KEY: 0000032621 STANDARD INDUSTRIAL CLASSIFICATION: HOUSEHOLD AUDIO & VIDEO EQUIPMENT [3651] IRS NUMBER: 223285224 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: DFAN14A BUSINESS ADDRESS: STREET 1: NINE ENTIN RD STREET 2: PO BOX 430 CITY: PARSIPPANY STATE: NJ ZIP: 07054-0430 BUSINESS PHONE: 2018845800 FORMER COMPANY: FORMER CONFORMED NAME: MAJOR ELECTRONICS CORP DATE OF NAME CHANGE: 19770921 DFAN14A 1 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- - ------------------------------------------- SCHEDULE 14A (RULE 14a-101) INFORMATION REQUIRED IN PROXY STATEMENT SCHEDULE 14A INFORMATION PROXY STATEMENT PURSUANT TO SECTION 14 OF THE SECURITIES EXCHANGE ACT OF 1934 (AMENDMENT NO. 3) Filed by the Registrant [_] Filed by a Party other than the Registrant [X] [_] Confidential, for Use of the Commission Only (as permitted by Check the appropriate box: Rule 14a- 6(e)(2)) [_] Preliminary Proxy Statement [ ] Definitive Proxy Statement [X] Definitive Additional Materials [_] Soliciting Material Pursuant to Rule 14a-11(c) or Rule 14a-12 INTERNATIONAL JENSEN INCORPORATED (NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) EMERSON RADIO CORP. (NAME OF PERSON(S) FILING PROXY STATEMENT, IF OTHER THAN THE REGISTRANT) Payment of Filing Fee (Check the appropriate box): [_] $125 per Exchange Act Rules 0-11(c)(1)(ii), 14a-6(i)(1), 14a-6(i)(2) or Item 22(a)(2) of Schedule 14A. [_] $500 per each party to the controversy pursuant to Exchange Act Rule 14a- 6(i)(3). [X] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11. (1) Title of each class of securities to which transaction applies: common stock, $.01 par value per share (2) Aggregate number of securities to which transaction applies: 5,735,140 shares of common stock (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11: $8.90 (3,599,354 shares of common stock); $11.00 (2,135,786 shares of common stock) (4) Proposed maximum aggregate value of transaction: $55,527,896 (5) Total fee paid: $11,105.58 [X] Fee paid previously with preliminary materials. [_] Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number or the Form or Schedule and the date of its filing. (1) Amount Previously Paid: (2) Form, Schedule or Registration Statement No.: (3) Filing Party: (4) Date Filed: - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- - -------------------------------------------- [EMERSON LOGO] August 20, 1996 Dear International Jensen Stockholder: WHEN WAS THE LAST TIME THAT SOMEONE TOLD YOU THAT $11 WAS WORTH MORE THAN $12? This is what Robert Shaw, your company's Chairman, CEO, and President, wants you to believe. PT Barnum once said "There's a sucker born every minute." But we believe that Jensen stockholders know the value of a dollar. You can protect your valuable investment in International Jensen by signing, dating and returning the enclosed BLUE proxy card today. DON'T BE MISLED Through a campaign of scare tactics, distortions and outright untruths, Jensen management has sought to sell you a transaction that we believe will leave a hole in your pocketbook, while providing lavish benefits to a handful of Jensen executives, particularly Bob Shaw. You should know that: - Shaw has negotiated for himself a sweetheart deal which allows Shaw to purchase Jensen's original equipment manufacturing business for only $18.2 million, or approximately $8.2 million (about $4 per share) below its net book value and well below what we also believe is its fair market value. This means that Shaw would receive at least approximately $13 per share in value for his investment while you and other public stockholders get $11. Ask yourself why Mr. Shaw is entitled to receive more value for his Jensen shares than you are. - Shaw and Jensen have failed to tell you that Lehman Brothers has not provided the opinion required in the OEM business sales agreement that the proceeds from the OEM sale are fair from a financial point of view to Jensen. Instead, their fairness opinion is offered ONLY IN THE CONTEXT OF THE JENSEN/RECOTON MERGER and depends upon certain questionable assumptions.{1} - Shaw has also obtained for himself and senior management lucrative contracts largely to be paid by Recoton, an entity he introduced to Lehman Brothers, for "managing" those portions of the Jensen business to be purchased by Recoton. Recoton is offering you less for your shares than Emerson, while paying more to Shaw and his cronies through these lavish management contracts. - Shaw would receive additional side benefits in connection with his purchase of Jensen's OEM business. Under those agreements, Shaw would supply products to Recoton at escalating prices, in an industry where prices continue to decline. We believe this is another example of how Recoton is transferring value to Shaw, in exchange for his support, to the financial detriment of other Jensen stockholders. - Shaw and Jensen have attacked the structure of our proposal. But, while Shaw and Jensen claimed that our structure could not be done under Delaware law, their own lawyers admitted in open court that Delaware law is not clear on this point. EMERSON STANDS READY TO MAXIMIZE VALUE FOR ALL STOCKHOLDERS Emerson is ready and willing to pay you a substantial premium for your shares. Financing is not an issue. While Shaw and Jensen have questioned our financing commitments, you should know that a representative of Bankers Trust Company has testified UNDER OATH that financing continues to be available if Emerson is able to acquire Jensen on similar terms to its previous offers. Furthermore, Shaw has never demonstrated ANY financing for his purchase of the OEM business and Shaw has failed to tell you that under his sweetheart deal he can walk away at no cost to him but with full reimbursement of his expenses, and he can borrow, risk-free, corporate assets in the form of Jensen receivables to help fund his purchase. Emerson is offering $12 for each share owned by public stockholders and has offered $2.2 million more for Jensen's OEM business than Bob Shaw is willing to pay. Our offer is clearly financially superior to the self- dealing transactions between Shaw and Recoton. We believe that the only obstacle to your receiving full value for your shares is the stubborn refusal to Jensen's Board to negotiate in good faith. YOUR BOARD ANSWERS TO YOU The fact that Shaw and Blair control more than a majority of Jensen's shares does not relieve them of their fiduciary responsibilities to you. Although the Board seems to have forgotten that Jensen is not a privately- run company, under the law it has a duty to maximize value for ALL of Jensen's stockholders, not just Shaw. Do not provide them with a release from liability by giving them an affirmative vote. IT'S NOT A DONE DEAL Don't be railroaded into accepting less than fair market value for your investment in International Jensen. Remember the current Recoton deal requires the separate approval of a majority of Jensen shares VOTED AT THE MEETING OTHER THAN THOSE OWNED BY SHAW. Consequently International Jensen stockholders have the power to defeat what we believe is a transaction designed to benefit Bob Shaw at the expense of other stockholders. YOUR VOTE IS IMPORTANT TELL YOUR BOARD THAT YOU WILL NOT ACCEPT LESS THAN FAIR VALUE FOR YOUR SHARES. PLEASE SIGN, DATE, AND RETURN THE BLUE PROXY CARD TODAY VOTING AGAINST THE SELF-DEALING RECOTON TRANSACTION. Thank you for your continuing support. Sincerely, Eugene I. Davis President IMPORTANT The Jensen/Recoton merger may be prevented if 10% or more of Jensen's total outstanding shares exercise their dissenters' rights as permitted by Delaware law. To exercise your dissenters' rights, you should vote AGAINST the merger and follow the procedures described in "The Merger--Dissenters Rights" in Jensen's proxy statement. If you have any questions or need assistance in voting your shares, please call Georgeson & Company Inc., toll-free, at 1-800-223-2064. **FOOTNOTES** {1}Such assumptions include that the prior sale of the OEM business is a necessary precondition to the Recoton merger and that the Jensen Board limited potential purchasers to insiders. -----END PRIVACY-ENHANCED MESSAGE-----