-----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, g6WVpfB4i1d9QI6PjaaCbZhDfbLcKr6mbM1L0j6KmxI1I7AEee8koVoZ6TwBzZIe F5hLWOnRziLkFErXOlMG1g== 0000922423-95-000128.txt : 19950616 0000922423-95-000128.hdr.sgml : 19950616 ACCESSION NUMBER: 0000922423-95-000128 CONFORMED SUBMISSION TYPE: DEFC14A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19950615 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: 95547409 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 CONTACT: 212 929-5500 Stan Kay FAX 212-929-0308 (212) 929-5940 FOR IMMEDIATE RELEASE: DICKSTEIN PARTNERS PLACES EQUITY FOR HILL STORES OFFER NEW YORK, NEW YORK, June 14, 1995 -- Dickstein Partners Inc. today announced that it has entered into agreements with Indosuez Capital, Canyon Partners and Golub Associates regarding the investment of $20 million of equity capital in its proposed acquisition of Hills Stores Co. (NYSE: HDS). Dickstein Partners also announced that it is now willing to provide the balance of the $75 million of equity capital required to finance the proposed acquisition under the terms of the "highly confident" letters which have been provided to Dickstein Partners Inc. from NatWest Markets and NatWest Bank N.A. Mark Dickstein, President of Dickstein Partners Inc., commented, "At this time we have decided to accept only $20 million from outside investors. This will provide us with maximum financial flexibility for what we hope will be the auction of Hills Stores, at which point Hills will presumably allow us to negotiate with other Hills shareholders regarding their investment of equity capital. In this auction, if we can obtain a merger agreement in which the existing board approves of the prospective change in control, obviating the need for more than $20 million of golden parachute payments, then we believe it probable that we can raise our offer. Among the reasons that we are now willing to commit more equity capital to this transaction is the level of interest that has been expressed to us from both financial and strategic buyers in acquiring Hills." Dickstein Partners also responded to the question posed by Hills management in a letter sent to all shareholders dated June 12: 1. Where is Dickstein's financing? On May 24 we filed with the SEC "highly confident" letters provided to Dickstein Partners Inc. from NatWest Markets and NatWest Bank N.A. which detail their willingness to provide debt financing for our offer of $22 per share in cash plus $5 per share of new debt described in our proxy materials. -more- PAGE Dickstein Partners/Hills Stores. Co. June 14, 1995 Page Two 2. Will Dickstein ever make a firm offer? On May 24, in a letter sent to Hills, we offered pursuant to a merger, to acquire all of Hills' outstanding shares for $22 in cash and $5 per share of new debt. This is a firm offer. 3. Will Dickstein's hand-picked nominee run a fair auction of Hills? Yes. We also encourage the existing board to instead serve as auctioneers. 4. What if Dickstein wins but cannot sell Hills? We expect the existing Board to delay Hills' annual meeting and put Hills up for sale if it becomes apparent that we will win the proxy fight. However, if they do not, NatWest Bank N.A. has informed us that they are "highly confident" that they will provide Hills with financing when the Dickstein slate is elected. The Dickstein nominees would then conduct an auction in which Hills would be sold to the highest bidder - an auction in which we intend to offer at least as much as our current proposal. 5. Will Mark Dickstein favor his own interests over yours? Consider the following: The Chairman of the Board of Hills. Thomas H. Lee, who led hills into bankruptcy, receives a consulting fee of $250,000 a year from Hills plus regular director fees, while another Board member is the beneficiary of a $2 million golden parachute. In sharp contrast, Mark Dickstein, who is Chairman of the Board of Carson Pirie Scott & Co., and who led Carson's out of bankruptcy, received $38,000 in director fees last year from Carson's - approximately the same compensation as all other Carson's directors. Mark Dickstein further commented, "Now that all our financing is arranged, we believe the choice for Hills' shareholders is clear - -- to vote for directors committed to a sale of Hills to the highest bidder, with our acquisition proposal serving as a floor." # # # -----END PRIVACY-ENHANCED MESSAGE-----