-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, cnzPbp4aQeFIcUkUYqugx3CEYpCSzLZLOQEOFAi2Ias5QUg0o09naXhFdBj1yy/p k7dIimMVtwDKWSVw5CgNDw== 0000005907-95-000046.txt : 19950623 0000005907-95-000046.hdr.sgml : 19950623 ACCESSION NUMBER: 0000005907-95-000046 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 3 FILED AS OF DATE: 19950622 SROS: NASD SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: LIN BROADCASTING CORP CENTRAL INDEX KEY: 0000059498 STANDARD INDUSTRIAL CLASSIFICATION: TELEVISION BROADCASTING STATIONS [4833] IRS NUMBER: 620673800 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-11563 FILM NUMBER: 95548670 BUSINESS ADDRESS: STREET 1: 1150 CONNECTICUT AVENUE NW STREET 2: 4TH FLOOR CITY: WASHINGTON STATE: DC ZIP: 20036 BUSINESS PHONE: 2068281902 MAIL ADDRESS: STREET 1: 1150 CONNECTICUT AVENUE NW STREET 2: 4TH FLOOR CITY: WASHINGTON STATE: DC ZIP: 20036 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: AT&T CORP CENTRAL INDEX KEY: 0000005907 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 134924710 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 32 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10013 BUSINESS PHONE: 2123875400 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN TELEPHONE & TELEGRAPH CO DATE OF NAME CHANGE: 19920703 SC 13D/A 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13D/A Under the Securities Exchange Act of 1934 (Amendment No. 45 )* LIN Broadcasting Corporation (Name of Issuer) Common Stock, par value $0.01 per share (Title of Class of Securities) 0005327630 (CUSIP Number) Marilyn J. Wasser Andrew A. Quartner AT&T Corp. McCaw Cellular Communications, Inc. 32 Avenue of the Americas 1150 Connecticut Ave., NW New York, NY 10013-2412 Washington, DC 20036 (212) 387-5400 (202) 223-9222 (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) June 22, 1995 (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 which is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ]. Check the following box if a fee is being paid with the statement [ ]. (A fee is not required only if the reporting person: (1) has a previous statement on file reporting beneficial ownership of more than five percent of the class of securities described in Item 1; and (2) has filed no amendment subsequent thereto reporting beneficial ownership of five percent or less of such class.) (See Rule 13d-7.) Note: Six copies of this statement, including all exhibits, should be filed with the Commission. See Rule 13d-1(a) for other parties to whom copies are 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). (Continued on following page(s)) This Amendment No. 45 (the "Amendment") amends the Schedule 13D filed on April 7, 1988, as previously amended (the "Schedule 13D"), with regard to the Common Stock, par value $0.01 per share ("Common Stock"), of LIN Broadcasting Corporation, a Delaware corporation ("LIN" or the "Issuer"), as set forth below. Capitalized terms used without definition in this Amendment shall have the meanings ascribed thereto in the Schedule 13D. Item 4 - Purpose of Transaction Item 6 - Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer The information contained in Items 4 and 6 of the Schedule 13D is hereby supplemented by the following: On June 22, 1995, McCaw announced that it had agreed in principle with the plaintiffs to settle the pending LIN shareholder lawsuits (the "Stockholders Litigation") relating to McCaw's proposed acquisition of the Public Shares in the Merger pursuant to the terms of the Merger Agreement. Under the terms of the proposed settlement (the "Settlement"), as set forth in the Memorandum of Understanding dated June 22, 1995 (the "Memorandum of Understanding"), McCaw would increase the merger price from $127.50 to $129.50 per Share in cash. Also, under the Settlement, the LIN public stockholders could receive an additional amount of up to $.25 per Share, depending on the determination by the Delaware Court of Chancery (the "Delaware Court") of the plaintiffs' attorneys' fee. If the Delaware Court awards a total fee of up to $4 million, the additional $.25 per Share would be paid to the LIN public stockholders as additional merger consideration. If the Delaware Court awards a total fee of more than $4 million, the amount in excess of $4 million would be deducted from the additional $.25 per Share and any amount remaining would be paid to the LIN public stockholders as additional merger consideration. In addition, under the Settlement, if the Merger is not completed by September 15, 1995, McCaw would pay interest on the revised merger price (including the additional amount of up to $.25 per Share, if applicable) to the LIN public stockholders at a rate of 5-1/2% per annum from, but not including, September 15, 1995 through, and including, the date upon which the closing of the Merger occurs. The Settlement is conditioned on, among other things, (i) approval by the LIN Board of Directors, including the LIN Independent Directors, of the terms of the Settlement, which would include assent to the scheduled conversion by certain LIN systems to equal access and the marketing of certain LIN services under the AT&T name pending the Merger, (ii) receipt by the LIN Board of Directors of an opinion from a mutually acceptable investment banking firm as to the fairness of the consideration that would be received by the LIN public stockholders pursuant to the revised terms of the Merger reflected in the Settlement, (iii) definitive documentation and completion of discovery and (iv) approval of the Delaware Court. The revised terms of the Merger reflected in the Settlement would remain subject to approval of the holders of a majority of the Public Shares voting at a meeting of LIN stockholders to be held to vote thereon. McCaw's obligation to consummate the Merger would also be subject to approval of the Settlement by a final and nonappealable order of the Delaware Court. The full text of the Memorandum of Understanding is attached hereto as Exhibit 99.1. The full text of the press release issued by McCaw on June 22, 1995, announcing McCaw's agreement in principle to settle the Stockholders Litigation, is attached hereto as Exhibit 99.2. Item 7. Material to be Filed as Exhibits The information contained in Item 7 of the Schedule 13D is hereby supplemented by the following: 99.1 Memorandum of Understanding dated June 22, 1995. 99.2 Press release issued by McCaw on June 22, 1995. SIGNATURE The undersigned hereby agree that this Amendment to Schedule 13D is filed on behalf of each of them and, after reasonable inquiry and to the best of their knowledge and belief, certify that the information set forth in this statement is true, complete and correct. AT&T CORP. By: MARILYN J. WASSER ----------------------------- Date: June 22, 1995 Marilyn J. Wasser Vice President-Law and Secretary McCAW CELLULAR COMMUNICATIONS, INC. By: ANDREW A. QUARTNER ----------------------------- Date: June 22, 1995 Andrew A. Quartner Senior Vice President-Law MMM HOLDINGS, INC. By: ANDREW A. QUARTNER ----------------------------- Date: June 22, 1995 Andrew A. Quartner Senior Vice President-Law EXHIBIT INDEX 99.1 Memorandum of Understanding dated June 22, 1995. 99.2 Press release issued by McCaw on June 22, 1995. EX-99 2 EXHIBIT 99.1 MEMORANDUM OF UNDERSTANDING WHEREAS there is now pending the consolidated action entitled In re LIN Broadcasting Corporation Shareholders Litigation, Consolidated C.A. No. 14039, and the action entitled Unger v. MMM Holdings, Inc., et al., C.A. No. 14123, in the Court of Chancery of the State of Delaware, New Castle County (the "Delaware Actions"), and the actions entitled Katz v. Allen, et al., Index No. 95-104259, Luke v. Wasserstein Perella & Co., et al., Index No. 95-105973, and Frank v. Alberg, et al., Index No. 95-108949, in the Supreme Court of the State of New York, County of New York (the "New York Actions") (collectively, the "Actions"). WHEREAS the Actions were filed as putative class actions on behalf of holders of LIN Common Shares, naming as defendants AT&T Corp. ("AT&T"), McCaw Cellular Communications, Inc. ("McCaw"), a wholly-owned subsidiary of AT&T, MMM Holdings, Inc. ("MMM"), a wholly-owned subsidiary of McCaw, certain individual officers and directors of AT&T, McCaw and LIN, Wasserstein Perella & Co. Inc. and Morgan Stanley & Co. Incorporated. WHEREAS the Actions variously seek injunctive relief, monetary damages and/or rescission on the grounds that the conduct of the various defendants in connection with a proposed plan of merger among LIN, McCaw and two subsidiaries of McCaw (the "Merger") and the determination of the private market value of the LIN Common Shares pursuant to the Private Market Value Guarantee entered into between LIN and McCaw in 1989 (the "PMVG"), which private market value was determined to be $127.50 per LIN Common Share and proposed as consideration in the Merger, constitutes, inter alia, a breach of the PMVG, unjust enrichment, and a breach of fiduciary duties. WHEREAS there is now pending an action entitled Newman v. McCaw Cellular Communications and AT&T Corp., C.A. No. 95 Civ. 1583, in the United States District Court for the Southern District of New York (the "Federal Action") that asserts certain federal claims and plaintiff has filed a Notice of Dismissal of the Federal Action seeking to voluntarily dismiss the Federal Action without prejudice and without costs. WHEREAS, following extensive negotiations, counsel for the parties have reached an agreement in principle providing for the settlement of the Actions (the "Settlement") on the terms and subject to the conditions set forth below. WHEREAS counsel for the parties believe that the Settlement is in the best interests of the parties and the LIN stockholders. IT IS HEREBY AGREED IN PRINCIPLE AS FOLLOWS: 1. Instead of the transaction previously contemplated, as a result of the aforesaid litigation, McCaw has agreed, if the Settlement contemplated herein is consummated, to pay in the Merger $129.50 per LIN Common Share, plus up to an additional $.25 per LIN Common Share as contemplated by paragraph 6 hereof (the "Merger Consideration"), at least $2.00 per LIN Common Share above the private market value determined pursuant to the PMVG, representing an aggregate increase of approximately $60 million over the PMVG private market value. If the Merger has not been completed by September 15, 1995, McCaw will pay simple interest on the Merger Consideration at an annual rate of 5-1/2% from September 15, 1995 to the closing of the Merger. As conditions to the Settlement, the terms of the Settlement must be approved by the Independent Directors, the Independent Directors must assent to the scheduled conversion by certain LIN systems to equal access and the marketing of certain LIN services under the AT&T name pending the Merger, and LIN must receive a fairness opinion at or around the date of approval of the Merger Agreement by the LIN Board from a mutually acceptable investment banking firm as to the fairness of the Merger Consideration. The parties agree that Wasserstein Perella & Co. is an acceptable investment banking firm for purposes of the preceding sentence. 2. The parties to the Actions will attempt in good faith to agree upon and execute an appropriate Stipulation of Settlement (the "Stipulation") and such other documentation as may be required in order to obtain final Court approval of the Settlement and the dismissal of the Actions upon the terms set forth in this Memorandum of Understanding. As part of the Settlement, plaintiffs shall file a consolidated amended complaint in the consolidated Delaware Action incorporating the allegations made in the New York Actions. 3. The parties to the respective Actions will present the Settlement to the Delaware Court of Chancery for approval as soon as practicable following appropriate notice to the stockholders of LIN on whose behalf the Actions were instituted, and will use their best efforts to obtain final Court approval of the Settlement and the dismissal of the Actions pending in the Delaware and New York state courts with prejudice as to all claims asserted in the Actions as against the named plaintiffs and the stockholders of LIN on whose behalf the Actions were brought with no right to opt-out of the Settlement and without costs to any party (except as provided in paragraph 6 below). The Stipulation will expressly provide, inter alia, for entry of a judgment and for a complete release and settlement of all claims against defendants and their predecessors, successors, parents, subsidiaries, affiliates and agents (including, without limitation, any investment bankers or attorneys and any past, present or future officers, directors or employees of defendants and their predecessors, successors, parents, subsidiaries, affiliates and agents) which have been, or could have been, asserted relating to the Merger, the actions of the LIN Board of Directors relating to the AT&T/McCaw Merger, the PMVG, the proxy statement, the actions of the Board of Directors of AT&T, McCaw or LIN relating to the Merger, or any of the transactions, disclosures, facts and allegations that are the subject of the Actions; that defendants have denied and continue to deny that they have committed or attempted to commit any violations of law or breaches of duty to LIN or its stockholders; and that defendants are entering into the Stipulation solely because the proposed Settlement as described above would eliminate the burden and expense of further litigation and is in the best interests of LIN and all its stockholders. As used herein, "final Court approval" of the Settlement means that the Delaware Court of Chancery has entered an order approving the Settlement and the New York Court has entered orders dismissing the New York Actions with prejudice and each of such orders is finally affirmed on appeal or is no longer subject to appeal. 4. The consummation of the Settlement is subject to: (a) the drafting and execution of an appropriate Stipulation and such other documentation as may be required to obtain final Court approval of the Settlement; (b) the completion by plaintiffs of appropriate confirmatory discovery in the Actions reasonably satisfactory to plaintiffs' counsel; and (c) final Court approval of the Settlement and dismissal of the Actions with prejudice and without awarding costs to any party (except as provided in paragraph 6 below). This Memorandum of Understanding shall be null and void and of no force and effect should any of these conditions not be met or should plaintiffs' counsel in the Actions determine that the Settlement is not fair and reasonable and, in that event, this Memorandum of Understanding shall neither be deemed to prejudice in any way the positions of the parties with respect to the Actions nor entitle any party to recover any costs or expenses incurred in connection with the implementation of this Memorandum of Understanding. 5. The Settlement contemplated hereby shall be conditioned upon consummation of the Merger. In addition, the Settlement contemplated hereby will not be binding upon any party if the Merger Agreement is terminated in accordance with its terms. AT&T and McCaw shall have the option to withdraw from the Settlement in the event that the Merger is terminated or in the event that final Court approval of the Settlement has not been obtained by November 30, 1995. 6. Plaintiffs' counsel intend to apply to the Delaware Court of Chancery for an award of attorneys' fees and reasonable out-of-pocket disbursements (together, the "Fees"). Subject to the terms and conditions of this Memorandum of Understanding and the Stipulation of Settlement contemplated by paragraphs 2 and 5 above, plaintiffs' counsel will apply for a fee of up to $4 million plus $.25 per LIN public share, which will not be opposed by the parties. If the Court finally awards a total fee of $4 million or less, McCaw will pay that amount to the plaintiffs' attorneys and an additional $.25 per LIN public share will be paid to the LIN public stockholders as additional Merger Consideration. If the Court finally awards a total fee of more than $4 million, the amount in excess of $4 million will be deducted from the $.25 per LIN public share and, if any amount remains after such deduction, the remaining amount will be paid to the public stockholders as additional Merger Consideration. If final Court approval of the settlement is obtained but the amount of the attorneys' fee is still in dispute, McCaw will close the Merger and pay $129.50 per LIN public share plus accrued interest, if any, in the Merger. In such case, the additional amount of $.25 per LIN public share will be deposited into an interest bearing account. Following final Court determination of the attorneys' fee, the amount in such account (including pro rata interest) will be paid in whole or in part to the plaintiffs' attorneys and/or in whole or in part to the public stockholders who receive the Merger Consideration, as ordered by the Delaware Court. In the event that the Merger is consummated and, for whatever reason, plaintiffs' counsel is not yet entitled to the payment of the Fees, McCaw shall pay the lesser of $4 million or the amount of Fees awarded by the Delaware Court within five days after the consummation of the Merger into an interest bearing escrow account and, upon the receipt of final Court approval, shall cause the amount finally awarded by the Court, together with any interest, to be paid to plaintiff's counsel. McCaw shall pay the costs and expenses related to providing notice of the Settlement to the LIN stockholders. Dated: June 22, 1995 ABBEY & ELLIS /s/ ------------------------------------- By Arthur Abbey 212 East 39th Street New York, NY 10016 (212) 889-3700 Member of Plaintiffs' Executive Committee in the Delaware Action and Attorneys for Plaintiff Frank in the New York Action WOLF POPPER ROSS WOLF & JONES, L.L.P. /s/ ------------------------------------- By Lester L. Levy 845 Third Avenue New York, NY 10022 (212) 759-4600 Co-Chair of the Plaintiffs' Executive Committee in the Delaware Action and on behalf of the plaintiffs in the Katz, Luke and Unger Actions BERNSTEIN LIEBHARD & LIFSHITZ /s/ ------------------------------------- By Stanley D. Bernstein 274 Madison Avenue New York, NY 10016 (212) 779-1414 Co-Chair of the Plaintiffs' Executive Committee in the Delaware Action and on behalf of the plaintiffs in the Katz, Luke and Unger Actions WACHTELL, LIPTON, ROSEN & KATZ /s/ ------------------------------------- By Marc Wolinsky 51 West 52nd Street New York, NY 10019 (212) 403-1000 Attorneys for Defendants AT&T Corp., McCaw Cellular Communications, Inc. MMM Holdings, Inc. and the Individual Director Defendants of AT&T, McCaw and LIN (except the LIN Independent Director Defendants) EX-99 3 EXHIBIT 99.2 McCAW AGREES IN PRINCIPLE TO SETTLE LIN LITIGATION FOR RELEASE: THURSDAY, JUNE 22, 1995 NEW YORK - McCaw Cellular Communications said that it had agreed in principle with the plaintiffs to settle shareholder lawsuits relating to its proposed acquisition of the publicly held shares of LIN Broadcasting. Under the settlement, McCaw would increase the purchase price of LIN to $129.50 per share in cash. It is currently $127.50 per share. The resolution of the litigation is expected to allow the parties to work together towards an expeditious closing of the merger and let the companies focus on marketing wireless services. Also under the agreement, LIN public shareowners could receive an additional amount of up to 25 cents per share, depending on the court's determination of attorneys' fees. If the court awards a total fee of up to $4 million, an additional 25 cents per share would be paid to LIN public shareowners. If the total fee exceeds $4 million, the amount in excess would be deducted from the additional 25 cents per share, and any amount remaining would be paid to LIN public shareholders. In addition, if the merger is not completed by September 15, 1995, McCaw would pay interest on the increased merger price to LIN shareowners from that date until closing at an annual rate of 5.5 percent. The settlement is subject to approval of LIN's board and independent directors, including assent to LIN's scheduled conversion to equal access and marketing of wireless services under the AT&T brand name. The settlement is also subject to other conditions, including receipt of a fairness opinion on the revised merger terms. McCaw is working with the LIN independent directors to satisfy these conditions. The revised merger terms reflected in the settlement would remain subject to the approval of the LIN public shareowners, and McCaw's obligation to close would also be subject to final court approval of the litigation settlement. As previously announced, McCaw, which owns about 52 percent of LIN, had decided to proceed with an acquisition of the public shares of LIN Broadcasting at $127.50 per share subject to satisfactory resolution of pending shareholder suits. That price was determined by the investment banking firm of Wasserstein Perella & Co. under terms of an agreement between McCaw and LIN, reached in 1989 when McCaw acquired a controlling interest in LIN. Following LIN board approval, the next steps in the merger process include filing a proxy statement for review by the Securities and Exchange Commission (SEC). When the SEC completes its review, LIN will then set a date for a special meeting of LIN shareowners to vote on the merger. It is tentatively planned for late August or early September. A majority of the LIN public shares voting at the meeting is required for approval. The memorandum of understanding setting forth the terms of the proposed litigation settlement is being filed with the SEC today as an exhibit to McCaw's Schedule 13D. The companies expect to file the proxy statement soon so that the SEC review can proceed concurrently with the proposed litigation settlement. LIN has a total of about 53.3 million shares on a fully diluted basis. # # # -----END PRIVACY-ENHANCED MESSAGE-----