-----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, i36qUd/LX4yzqUZjS1p/+dz/A2l2i5cbplAXcuZmQQY4tIzx/xtsxSKNnK5adyKN D1cVvLDoZTAF+B2JHk/Xjg== 0000922423-95-000115.txt : 19950607 0000922423-95-000115.hdr.sgml : 19950607 ACCESSION NUMBER: 0000922423-95-000115 CONFORMED SUBMISSION TYPE: DEFC14A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19950606 SROS: NYSE SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: HILLS STORES CO /DE/ CENTRAL INDEX KEY: 0000786877 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-DEPARTMENT STORES [5311] IRS NUMBER: 311153510 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: DEFC14A SEC ACT: 1934 Act SEC FILE NUMBER: 001-09505 FILM NUMBER: 95545384 BUSINESS ADDRESS: STREET 1: 15 DAN RD CITY: CANTON STATE: MA ZIP: 02021 BUSINESS PHONE: 6178211000 MAIL ADDRESS: STREET 1: 15 DAN ROAD CITY: CANTON STATE: MA ZIP: 02021 FORMER COMPANY: FORMER CONFORMED NAME: HILLS STORES CO /NEW/ DATE OF NAME CHANGE: 19931103 FORMER COMPANY: FORMER CONFORMED NAME: HILLS STORES CO /NEW/ DATE OF NAME CHANGE: 19931015 FORMER COMPANY: FORMER CONFORMED NAME: THL HOLDINGS INC DATE OF NAME CHANGE: 19870506 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: DICKSTEIN PARTNERS INC CENTRAL INDEX KEY: 0000922415 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 133537972 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: DEFC14A BUSINESS ADDRESS: STREET 1: 9 WEST 57TH STREET CITY: NEW YORK STATE: NY ZIP: 10019 MAIL ADDRESS: STREET 1: 9 WEST 57TH STREET CITY: NEW YORK STATE: NY ZIP: 10019 DEFC14A 1 PRESS RELEASE SCHEDULE 14A (Rule 14a-101) INFORMATION REQUIRED IN PROXY STATEMENT SCHEDULE 14A INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 Filed by the Registrant /_/ Filed by a Party other than the Registrant /x/ Check the appropriate box: /_/ Preliminary Proxy Statement /_/ Definitive Proxy Statement /x/ Definitive Additional Materials / / Soliciting Material Pursuant to Section 240.14a-11(c) or Section 240.14a-12 Hills Stores Company _________________________________________________________________ (Name of Registrant as Specified In Its Charter) Dickstein Partners Inc. _________________________________________________________________ (Name of Person(s) Filing Proxy Statement) Payment of Filing Fee (Check the appropriate box): /_/ $125 per Exchange Act Rules 0-11(c)(1)(ii), 14a-6(i)(1), or 14a-6(i)(2). /x/ $500 per each party to the controversy pursuant to Exchange Act Rule 14a-6(i)(3).* /_/ 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: _______________________________________________________________ (2) Aggregate number of securities to which transaction applies: _______________________________________________________________ (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11:(1) ________________________________________________________________ _________________________ (1) Set forth the amount on which the filing fee is calculated and state how it was determined. * Previously paid. _______________________________________________________________ (4) Proposed maximum aggregate value of transaction: _______________________________________________________________ /_/ 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: _________________________________________________________________ News Release MACKENZIE PARTNERS, INC. 156 FIFTH AVENUE NEW YORK, NY 10010 212 929-5500 FAX: 212 929-0308 FOR IMMEDIATE RELEASE Contact: Stan Kay MacKenzie Partners, Inc. 212-929-5940 DICKSTEIN PARTNERS WILLING TO RAISE OFFER FOR HILLS STORES NEW YORK, NEW YORK (June 5, 1995) -- Dickstein Partners Inc. today announced that it has mailed to Hills shareholders proxies to elect its slate of nominees to the Hills Board and that in response to Hills rejection of its merger proposal, its President, Mark Dickstein, has sent a letter to Hills Chief Executive Officer, Michael Bozic, which underscores Dickstein Partners' willingness to raise its offer to acquire Hills. The contents of the letter are as follows: Dear Mike: We were disappointed, but not surprised, by your Board's rejection of our most recent merger proposal and by your Board's refusal to commence an auction process to see if this bid can be improved upon. In your letter to the Hills shareholders you imply that if an auction of Hills is to occur, better for the auctioneers not to also be bidders. Firstly, if the existing Board were to conduct the auction, we would agree to defer our attempt to replace the Board so long as our rights were not impaired. Secondly, if our nominees are elected, then the sale of Hills would be conducted by an independent special committee of the Board comprised of our nominees, Chaim Edelstein and John Burden, plus hopefully yourself and Jack Reen, who we have previously said we would intend to appoint to the new Hills Board. PAGE I would also like to state that if our nominees are elected to the Hills Board, I pledge that Dickstein Partners will use its best efforts to ensure the following: One, the new Chairman of Hills would be compensated at substantially less than the $250,000 per year that your existing Chairman is paid. Two, if a board member is a consultant he would receive substantially less than the $750,000 your one board member- consultant received last year. Three, any board member- consultants would not be eligible for a $2 million golden parachute payment of the type that your existing Board has agreed to make. I would also like to point out that we believe that your Chairman has a conflict of interest regarding the sale of Hills. It is our understanding that entities which he controls own approximately 340,000 rights to purchase Hills stock for $.01 per share which would be rendered worthless if another entity were to acquire Hills. As a result, I wonder whether he can truly act in a disinterested fashion in this matter. On the topic of "golden parachutes" not all the news is bad. As you are probably aware, in the event of a change of control that the existing Hills Board does not approve, then in fact there will be approximately $20 million of payments that must be made to members of the management and one board member even if the beneficiaries continue to be employed by Hills. However, if the existing Board approves of the change in control, then the severance payments are only made if the respective individual is no longer employed by Hills in a similar capacity. Obviously, in such a circumstance a prospective buyer for Hills can, all other things being equal, afford to pay a higher price for Hills. And, due to the fact that our stated preference is to continue to employ all of Hills' existing management, if the existing Hills Board does not automatically trigger the $20 million golden parachute upon a change in control then we believe it probable that we can raise our existing offer. I also think that if the Hills Board does not approve of this change in control it would be ignoring its fiduciary obligations to shareholders by effectively transferring $20 million from shareholders to management just when a sale of the company is about to occur. Your message to Hills shareholders can be summarized as follows: 1) This is the wrong time to sell the Company because the stock price is too low. When is the right time, when the stock price is high? I don't get it. PAGE 2) If the Dickstein nominees are elected there is no guarantee the Company will be sold. Firstly, we pledge to use our best efforts to sell the Company. Secondly, we have no problem with the existing Board acting as auctioneer so long as the process is fair. Thirdly, we believe we can consummate our merger proposal by September if we can expeditiously enter into a merger agreement with Hills. By voting their proxies the Hills shareholders will determine the outcome of this situation. As the votes are counted over the next three weeks, we continue to be willing to delay our proxy contest if the existing Board postpones the upcoming annual meeting so as to allow for the sale of the Company to the highest bidder. Sincerely, Mark Dickstein Mark Dickstein commented, "The Hills shareholders now need to make the choice whether they prefer a low stock price combined with a risky, growth strategy or do they prefer the sale of the Company for at least as much consideration as our merger proposal. Numerous interested parties, both financial and strategic, have expressed interest in working with us to acquire Hills. We expect to soon sign letters of intent with several financial institutions regarding the investment of equity capital in our proposed acquisition of Hills." -----END PRIVACY-ENHANCED MESSAGE-----