------------------- ------------------
CUSIP No. 719153108 13D Page 1 of 28 Pages
------------------- ------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
--------------
SCHEDULE 13D
(RULE 13D-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO RULE 13D-1(A) AND AMENDMENTS THERETO FILED PURSUANT TO
RULE 13D-2(A)
(Amendment No. 6)(1)
PHOENIX TECHNOLOGIES LTD.
-------------------------
(Name of Issuer)
COMMON STOCK, $.001 PAR VALUE
------------------------------
(Title of Class of Securities)
719153108
--------------
(CUSIP Number)
STEVEN WOLOSKY, ESQ.
OLSHAN GRUNDMAN FROME ROSENZWEIG & WOLOSKY LLP
Park Avenue Tower
65 East 55th Street
New York, New York 10022
(212) 451-2300
---------------------------------------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
JANUARY 16, 2007
-------------------------------------------------------
(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 that is the subject of this Schedule 13D, and is filing
this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the
following box |_|.
NOTE. Schedules filed in paper format shall include a signed original and
five copies of the schedule, including all exhibits. SEE Rule 13d-7 for other
parties to whom copies are to be sent.
(Continued on following pages)
(Page 1 of 28 Pages)
--------
(1) 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 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).
------------------- ------------------
CUSIP No. 719153108 13D Page 2 of 28 Pages
------------------- ------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
STARBOARD VALUE AND OPPORTUNITY MASTER FUND LTD.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
2,774,471
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 2,774,471
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,774,471
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
10.9%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------- ------------------
CUSIP No. 719153108 13D Page 3 of 28 Pages
------------------- ------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
PARCHE, LLC 20-0870632
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
528,470
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 528,470
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
528,470
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.1%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------- ------------------
CUSIP No. 719153108 13D Page 4 of 28 Pages
------------------- ------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
ADMIRAL ADVISORS, LLC 37-1484525
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
3,302,941
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 3,302,941
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,302,941
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.9%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IA, OO
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------- ------------------
CUSIP No. 719153108 13D Page 5 of 28 Pages
------------------- ------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
RAMIUS CAPITAL GROUP, L.L.C. 13-3937658
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
3,302,941
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 3,302,941
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,302,941
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.9%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IA, OO
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------- ------------------
CUSIP No. 719153108 13D Page 6 of 28 Pages
------------------- ------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
C4S & CO., L.L.C. 13-3946794
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
3,302,941
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 3,302,941
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,302,941
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.9%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------- ------------------
CUSIP No. 719153108 13D Page 7 of 28 Pages
------------------- ------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
PETER A. COHEN
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
-0-
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 3,302,941
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON -0-
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
3,302,941
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,302,941
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.9%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------- ------------------
CUSIP No. 719153108 13D Page 8 of 28 Pages
------------------- ------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
MORGAN B. STARK
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
-0-
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 3,302,941
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON -0-
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
3,302,941
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,302,941
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.9%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------- ------------------
CUSIP No. 719153108 13D Page 9 of 28 Pages
------------------- ------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
JEFFREY M. SOLOMON
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
-0-
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 3,302,941
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON -0-
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
3,302,941
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,302,941
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.9%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------- -------------------
CUSIP No. 719153108 13D Page 10 of 28 Pages
------------------- -------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
THOMAS W. STRAUSS
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
-0-
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 3,302,941
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON -0-
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
3,302,941
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,302,941
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.9%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------- -------------------
CUSIP No. 719153108 13D Page 11 of 28 Pages
------------------- -------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
JOHN MUTCH
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
200,000
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 200,000
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
200,000
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
Less than 1%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------- -------------------
CUSIP No. 719153108 13D Page 12 of 28 Pages
------------------- -------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
PHILIP MOYER
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
- 0 -
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON - 0 -
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
- 0 -
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------- -------------------
CUSIP No. 719153108 13D Page 13 of 28 Pages
------------------- -------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
JEFFREY C. SMITH
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
- 0 -
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON - 0 -
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
- 0 -
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------- -------------------
CUSIP No. 719153108 13D Page 14 of 28 Pages
------------------- -------------------
The following constitutes Amendment No. 6 ("Amendment No. 6") to the
Schedule 13D filed by the undersigned. This Amendment No. 6 amends the Schedule
13D as specifically set forth.
The final paragraph of Item 2(a) is hereby amended and restated as
follows:
As of January 12, 2007, the Reporting Persons were the beneficial
owners of, in the aggregate, 3,502,941 Shares, representing approximately 13.7%
of the Shares presently outstanding.
Item 4 is hereby amended to add the following:
On January 16, 2007, Admiral Advisors delivered a letter (the
"Letter") to the Board of Directors of the Issuer submitting a revised offer to
acquire all of the Shares of the Issuer it does not already own, for $5.25 per
Share in cash (the "Offer"). The Letter, including the terms of the proposed
Offer, is attached as an exhibit hereto and incorporated herein by reference.
On January 16, 2007, Ramius Capital issued a press release (the
"Press Release") relating to the Offer. The Press Release also announced that
Starboard has filed preliminary proxy material with the Securities and Exchange
Commission (the "SEC") seeking to elect an alternate slate of candidates to the
Board of Directors of the Issuer. The Press Release, including certain
information concerning the participants and the proxy materials, is attached as
an exhibit hereto and incorporated herein by reference. Upon finalization of its
proxy materials and the filing of definitive proxy material with the SEC, Ramius
Capital intends to solicit proxies from the stockholders of the Issuer in order
to elect John Mutch and Philip Moyer (the "Nominees") as Class II directors of
the Issuer.
On January 16, 2007, Starboard, in response to the Issuer's
reduction of the size of the Issuer's Board of Directors from seven to six and
the number of Class II directors from three to two, delivered a supplement to
the Nomination Letter (the "Nomination Letter Supplement") withdrawing Jeffrey
C. Smith as a nominee for election as a Class II director at the 2007 Annual
Meeting. The Nomination Letter Supplement further provided that Messrs. Mutch
and Moyer are Starboard's two Nominees for election as Class II directors at the
Annual Meeting. The Nomination Letter Supplement is attached as an exhibit
hereto and incorporated herein by reference.
Item 5 is hereby amended and restated as follows:
The aggregate percentage of Shares reported owned by each person
named herein is based upon 25,574,579 Shares outstanding as of January 10, 2007,
which is the total number of Shares outstanding as reported in the Issuer's
Preliminary Proxy Statement on Schedule 14A, filed with the Securities and
Exchange Commission on January 12, 2007.
Item 7 is hereby amended to include the following exhibits:
------------------- -------------------
CUSIP No. 719153108 13D Page 15 of 28 Pages
------------------- -------------------
11. Letter from Admiral Advisors to the Issuer, dated January 16, 2007.
12. Press Release, dated January 16, 2007.
13. Nomination Letter Supplement, from Starboard to the Issuer, dated
January 16, 2007.
------------------- -------------------
CUSIP No. 719153108 13D Page 16 of 28 Pages
------------------- -------------------
SIGNATURES
After reasonable inquiry and to the best of his knowledge and
belief, each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Dated: January 16, 2007
STARBOARD VALUE AND ADMIRAL ADVISORS, LLC
OPPORTUNITY MASTER FUND LTD. By: Ramius Capital Group, L.L.C., its
managing member
PARCHE, LLC RAMIUS CAPITAL GROUP, L.L.C.
By: Admiral Advisors, LLC, its By: C4S & Co., L.L.C.,
managing member as managing member
C4S & CO., L.L.C.
By: /s/ Jeffrey M. Solomon
-----------------------
Name: Jeffrey M. Solomon
Title: Authorized Signatory
JEFFREY M. SOLOMON
/s/ Jeffrey M. Solomon
-------------------------------
Individually and as attorney-in-fact
for Peter A. Cohen, Morgan B. Stark
and Thomas W. Strauss
JEFFREY C. SMITH
/s/ Jeffrey C. Smith
-------------------------------
Individually and as attorney-in-fact
for John Mutch and Philip Moyer
------------------- -------------------
CUSIP No. 719153108 13D Page 17 of 28 Pages
------------------- -------------------
EXHIBIT INDEX
EXHIBIT PAGE
11. Letter from Admiral Advisors to the Issuer, dated January 18 to 21
16, 2007.
12. Press Release, dated January 16, 2007. 22 to 26
13. Nomination Letter Supplement from Starboard to the Issuer, 27 to 28
dated January 16, 2007.
------------------- -------------------
CUSIP No. 719153108 13D Page 18 of 28 Pages
------------------- -------------------
ADMIRAL ADVISORS, LLC LETTERHEAD
January 16, 2007
Board of Directors
Phoenix Technologies Ltd.
915 Murphy Ranch Road
Milpitas, CA 95035
Dear Board Members,
As you know, Admiral Advisors, LLC, a subsidiary of Ramius Capital Group,
L.L.C. (together, "Ramius"), remains seriously committed to purchasing the
outstanding capital stock of Phoenix Technologies Ltd. ("Phoenix" or the
"Company"). Therefore, we are resubmitting our revised offer to purchase for
$5.25 per share, in cash, all of the outstanding shares of Phoenix that we do
not already own. We have structured our offer to promptly bring value and
liquidity to all of the Company's shareholders on the terms and conditions set
forth below.
While we respect Woody, his new team, and the hardworking employees of the
Company, we believe Phoenix faces a difficult and risky operational turnaround.
We believe that Phoenix should not attempt this turnaround as a public company.
History has shown that this board of directors (the "Board"), when faced with
the pressures of being a public company, has responded with poor business
decisions that have had disastrous consequences for Phoenix and its
stockholders. We believe our $5.25 all-cash offer for all of the outstanding
shares is in the best interest of the Company's shareholders.
In addition, we believe that Phoenix is too small to bear the costs and to
handle the demands associated with operating as a public company. The market
demands that public companies demonstrate revenue growth, and we believe that
this expectation will pressure the Company to gain scale - potentially through
acquisitions - and to drive top-line growth. Phoenix's Board has already shown
its susceptibility to these pressures, as evidenced by its willingness to allow
management to diversify into an enterprise software business, organically build
the enterprise sales channel, and sell products on a fully paid-up license
basis. These decisions temporarily increased revenue, but proved to be major
mistakes ultimately damaging the core business and resulting in significant
destruction of shareholder value.
Executing a turnaround is difficult. Executing a turnaround in the public
spotlight is even more challenging. In a public turnaround, management will
disclose elements of its strategic plan, which, we believe will likely put the
Company at a competitive disadvantage and possibly interfere with its
effectiveness.
------------------- -------------------
CUSIP No. 719153108 13D Page 19 of 28 Pages
------------------- -------------------
Ramius is the Company's largest shareholder. Given the Company's poor
track record, we believe that this Board should not be trusted to evaluate
acquisition opportunities, growth investments, and product expansions while
overseeing a turnaround plan in the public spotlight.
We are committed to our $5.25 all-cash offer and are ready, willing and
able to immediately enter into negotiations for a definitive acquisition
agreement. The shareholders deserve to receive a full and fair price for their
shares now.
Our $5.25 all-cash offer is full and fair and represents a premium of
approximately 13.4% over the January 12, 2007 closing price of $4.63 per share,
and a premium of approximately 31.3% over the June 22, 2006 closing price of
$4.00, which was the closing price of the stock the day after the Company
announced the shift in its Core System Software pricing strategy. Given the
Board's refusal, to date, to negotiate with us in good faith, we have decided to
disclose our offer publicly and to proceed with our plans to elect an alternate
slate of board members at the Company's annual meeting of stockholders. While we
believe it would be in everyone's best interest to expeditiously complete this
transaction on a friendly basis, our candidates, subject to their fiduciary
duties, are committed to facilitating the negotiation of a mutually beneficial
transaction. We also reserve the right to make an offer directly to the
Company's shareholders if this Board continues to ignore the best interests of
its shareholders.
TRANSACTION TERMS
Based upon our review of the materials made available, Admiral Advisors,
LLC, a subsidiary of Ramius Capital Group, L.L.C. proposes, through a merger
with an appropriate newly formed acquisition entity (the "Purchaser"), to
acquire the Company (the "Transaction") on the following terms:
1. PURCHASE PRICE: $5.25 PER SHARE IN CASH.
2. CLOSING CONDITIONS: The Transaction is subject to the following limited
conditions:
(a) approval by the board of directors of the Company and
stockholders pursuant to the requirements of applicable law;
(b) receipt of any material governmental and third party approvals
(including expiration of all applicable waiting periods under
Hart-Scott Rodino, to the extent required);
(c) completion of customary confirmatory business, accounting,
financial, environmental and legal due diligence;
------------------- -------------------
CUSIP No. 719153108 13D Page 20 of 28 Pages
------------------- -------------------
(d) the waiver of any Company anti-takeover provisions including
redemption of the Company's shareholder rights plan and waiver
of Delaware General Corporate Law Section 203; and
(e) the negotiation and execution of a mutually satisfactory
definitive merger agreement and the receipt of disclosure
schedules related thereto in a form reasonably acceptable to
us.
3. FUNDING SOURCES: The Purchaser has sufficient committed capital to finance
the Transaction. The Transaction is not subject to financing.
4. TIMING: The Purchaser is committed to allocating a sufficient amount of
resources and is confident that it will be able to close the Transaction
on an expedited basis. We require no external approvals.
5. CONDUCT OF BUSINESS: We expect that the Company will continue to operate
in the ordinary course of business and consistent with past practices and
that there will be no material adverse change to the Company's financial
condition or results of operation.
6. DUE DILIGENCE: The proposed Transaction is subject to completion to our
satisfaction of customary confirmatory business, accounting, financial,
environmental, and legal due diligence. With the full cooperation of the
Company and based upon information known to us, we would expect to
complete this process in no more than four weeks, if not earlier. Our
required due diligence will be limited to confirmation of information
generally known to us on the assumption that there is no material and
adverse information that the Company has not publicly disclosed.
7. NON-BINDING STATEMENT OF INTENT: This proposal is a statement of intention
only. A legally binding obligation with respect to the proposed
Transaction will arise only upon execution and delivery of definitive
agreements (acceptable to the Company and us), and then only on the terms
and conditions contained therein. We are committed to immediately
negotiating and executing a definitive merger agreement.
8. MANAGEMENT: We are receptive to discussions with senior management about
their future involvement in the business. We intend to speak with senior
management regarding their participation in this Transaction, and would
encourage and welcome their participation, although their participation is
not a condition to closing the Transaction. We are committed to preserving
the relationship of the Company with its employees.
We look forward to working with you to successfully and expeditiously
complete this transaction.
------------------- -------------------
CUSIP No. 719153108 13D Page 21 of 28 Pages
------------------- -------------------
Very truly yours,
/s/ Jeffrey C. Smith
----------------------------
Jeffrey C. Smith
Executive Managing Director
------------------- -------------------
CUSIP No. 719153108 13D Page 22 of 28 Pages
------------------- -------------------
RAMIUS CAPITAL SUBMITS REVISED OFFER TO ACQUIRE OUTSTANDING SHARES OF PHOENIX
TECHNOLOGIES FOR $5.25 IN CASH
FILES PRELIMINARY PROXY MATERIALS SEEKING TO ELECT ALTERNATE SLATE OF CANDIDATES
TO PHOENIX BOARD OF DIRECTORS
NEW YORK - JANUARY 16, 2007 - Admiral Advisors, LLC, a subsidiary of Ramius
Capital Group, L.L.C. (together, "Ramius") today announced that it has submitted
a revised offer to acquire for $5.25, in cash, all of the outstanding shares of
Phoenix Technologies Ltd. ("Phoenix" or the "Company") (NASDAQ: PTEC) that it
does not already own.
In a letter delivered to Phoenix's Board of Directors and filed with the U.S.
Securities and Exchange Commission ("SEC") in an amendment to its Schedule 13D,
Ramius, Phoenix's largest shareholder, stated that it remains seriously
committed to purchasing the outstanding capital stock of Phoenix and that
Phoenix shareholders will benefit from an immediate all-cash transaction that
offers an attractive premium.
Ramius Executive Managing Director Jeffrey C. Smith, stated in the letter:
"While we respect Woody, his new team, and the hardworking employees of the
Company, we believe Phoenix faces a difficult and risky operational turnaround.
We believe that Phoenix should not attempt this turnaround as a public company.
History has shown that this board of directors (the "Board"), when faced with
the pressures of being a public company, has responded with poor business
decisions that have had disastrous consequences for Phoenix and its
stockholders."
Smith continued, "Given the Company's poor track record, we believe that this
Board should not be trusted to evaluate acquisition opportunities, growth
investments, and product expansions while overseeing a turnaround plan in the
public spotlight."
The non-binding offer is not subject to financing, but is subject to a number of
other conditions including the completion of due diligence, and represents a
13.4% premium to Phoenix's closing share price on January 12, 2007.
In addition, Starboard Value and Opportunity Master Fund Ltd., an affiliate of
Ramius, today filed preliminary proxy materials with the SEC seeking to elect an
alternate slate of candidates to the Board of Directors of Phoenix. The nominees
identified in Starboard's preliminary proxy materials look to replace the two
current Class II directors whose terms will expire at the 2007 Annual Meeting of
Shareholders, which has been scheduled for February 14, 2007. Ramius stated that
the proposed nominees, John Mutch and Philip Moyer, subject to their fiduciary
duties, are committed to facilitating the negotiation of a mutually beneficial
transaction.
ABOUT RAMIUS CAPITAL GROUP, L.L.C.
Ramius Capital Group is a registered investment advisor that manages assets of
approximately $7.9 billion in a variety of alternative investment strategies.
Ramius Capital Group is headquartered in New York with offices located in
London, Tokyo, Hong Kong, Munich, and Vienna.
------------------- -------------------
CUSIP No. 719153108 13D Page 23 of 28 Pages
------------------- -------------------
CERTAIN INFORMATION CONCERNING THE PARTICIPANTS
Starboard Value and Opportunity Master Fund Ltd., an affiliate of Ramius Capital
Group, L.L.C. ("Ramius Capital"), together with the other participants named
herein, has made a preliminary filing with the Securities and Exchange
Commission ("SEC") of a proxy statement and an accompanying proxy card to be
used to solicit votes for the election of its nominees at the 2007 annual
meeting of stockholders of Phoenix Technologies Ltd., a Delaware corporation
(the "Company").
RAMIUS CAPITAL ADVISES ALL STOCKHOLDERS OF THE COMPANY TO READ THE PROXY
STATEMENT AND OTHER PROXY MATERIALS AS THEY BECOME AVAILABLE BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS WILL BE AVAILABLE AT NO
CHARGE ON THE SEC'S WEB SITE AT HTTP://WWW.SEC.GOV. IN ADDITION, THE
PARTICIPANTS IN THE PROXY SOLICITATION WILL PROVIDE COPIES OF THE PROXY
STATEMENT WITHOUT CHARGE UPON REQUEST. REQUESTS FOR COPIES SHOULD BE DIRECTED TO
THE PARTICIPANTS' PROXY SOLICITOR, INNISFREE M&A INCORPORATED, AT ITS TOLL-FREE
NUMBER: (877) 800-5185.
The participants in the proxy solicitation are Starboard Value and Opportunity
Master Fund Ltd., a Cayman Islands exempted company ("Starboard"), Parche, LLC,
a Delaware limited liability company ("Parche"), Admiral Advisors, LLC, a
Delaware limited liability company, Ramius Capital Group, L.L.C., a Delaware
limited liability company ("Ramius Capital"), C4S & Co., L.L.C., a Delaware
limited liability company ("C4S"), Peter A. Cohen, Morgan B. Stark, Thomas W.
Strauss, Jeffrey M. Solomon, John Mutch, Philip Moyer and Jeffrey C. Smith (the
"Participants").
Starboard beneficially owns 2,774,471 shares of Common Stock of the Company.
Parche beneficially owns 528,470 shares of Common Stock of the Company. As the
investment manager of Starboard and the managing member of Parche, Admiral
Advisors may be deemed to beneficially own the 2,774,471 shares of Common Stock
of the Company owned by Starboard and the 528,470 shares of Common Stock of the
Company owned by Parche. As the sole member of Admiral Advisors, Ramius Capital
may be deemed to beneficially own the 2,774,471 shares of Common Stock of the
Company owned by Starboard and the 528,470 shares of Common Stock of the Company
owned by Parche. As the managing member of Ramius Capital, C4S may be deemed to
beneficially own the 2,774,471 shares of Common Stock of the Company owned by
Starboard and the 528,470 shares of Common Stock of the Company owned by Parche.
As the managing members of C4S, each of Mr. Cohen, Mr. Stark, Mr. Strauss and
Mr. Solomon may be deemed to beneficially own the 2,774,471 shares of Common
Stock of the Company owned by Starboard and the 528,470 shares of Common Stock
of the Company owned by Parche.
------------------- -------------------
CUSIP No. 719153108 13D Page 24 of 28 Pages
------------------- -------------------
Mr. Mutch beneficially owns 200,000 shares of Common Stock of the Company.
Mr. Moyer does not beneficially own any shares of Common Stock of the Company.
Mr. Smith does not beneficially own any shares of Common Stock of the Company.
# # #
CONTACT:
Media & Shareholders:
Sard Verbinnen & Co.
Dan Gagnier or Renee Soto, 212-687-8080
The full text of the letter follows:
January 16, 2007
Board of Directors
Phoenix Technologies Ltd.
915 Murphy Ranch Road
Milpitas, CA 95035
Dear Board Members,
As you know, Admiral Advisors, LLC, a subsidiary of Ramius Capital Group, L.L.C.
(together, "Ramius"), remains seriously committed to purchasing the outstanding
capital stock of Phoenix Technologies Ltd. ("Phoenix" or the "Company").
Therefore, we are resubmitting our revised offer to purchase for $5.25 per
share, in cash, all of the outstanding shares of Phoenix that we do not already
own. We have structured our offer to promptly bring value and liquidity to all
of the Company's shareholders on the terms and conditions set forth below.
While we respect Woody, his new team, and the hardworking employees of the
Company, we believe Phoenix faces a difficult and risky operational turnaround.
We believe that Phoenix should not attempt this turnaround as a public company.
History has shown that this board of directors (the "Board"), when faced with
the pressures of being a public company, has responded with poor business
decisions that have had disastrous consequences for Phoenix and its
stockholders. We believe our $5.25 all-cash offer for all of the outstanding
shares is in the best interest of the Company's shareholders.
In addition, we believe that Phoenix is too small to bear the costs and to
handle the demands associated with operating as a public company. The market
demands that public companies demonstrate revenue growth, and we believe that
this expectation will pressure the Company to gain scale - potentially through
acquisitions - and to drive top-line growth. Phoenix's Board has already shown
its susceptibility to these pressures, as evidenced by its willingness to allow
management to diversify into an enterprise software business, organically build
the enterprise sales channel, and sell products on a fully paid-up license
basis. These decisions temporarily increased revenue, but proved to be major
mistakes ultimately damaging the core business and resulting in significant
destruction of shareholder value.
------------------- -------------------
CUSIP No. 719153108 13D Page 25 of 28 Pages
------------------- -------------------
Executing a turnaround is difficult. Executing a turnaround in the public
spotlight is even more challenging. In a public turnaround, management will
disclose elements of its strategic plan, which, we believe will likely put the
Company at a competitive disadvantage and possibly interfere with its
effectiveness.
Ramius is the Company's largest shareholder. Given the Company's poor track
record, we believe that this Board should not be trusted to evaluate acquisition
opportunities, growth investments, and product expansions while overseeing a
turnaround plan in the public spotlight.
We are committed to our $5.25 all-cash offer and are ready, willing and able to
immediately enter into negotiations for a definitive acquisition agreement. The
shareholders deserve to receive a full and fair price for their shares now.
Our $5.25 all-cash offer is full and fair and represents a premium of
approximately 13.4% over the January 12, 2007 closing price of $4.63 per share,
and a premium of approximately 31.3% over the June 22, 2006 closing price of
$4.00, which was the closing price of the stock the day after the Company
announced the shift in its Core System Software pricing strategy. Given the
Board's refusal, to date, to negotiate with us in good faith, we have decided to
disclose our offer publicly and to proceed with our plans to elect an alternate
slate of board members at the Company's annual meeting of stockholders. While we
believe it would be in everyone's best interest to expeditiously complete this
transaction on a friendly basis, our candidates, subject to their fiduciary
duties, are committed to facilitating the negotiation of a mutually beneficial
transaction. We also reserve the right to make an offer directly to the
Company's shareholders if this Board continues to ignore the best interests of
its shareholders.
Transaction Terms
Based upon our review of the materials made available, Admiral Advisors, LLC, a
subsidiary of Ramius Capital Group, L.L.C. proposes, through a merger with an
appropriate newly formed acquisition entity (the "Purchaser"), to acquire the
Company (the "Transaction") on the following terms:
1. PURCHASE PRICE: $5.25 PER SHARE IN CASH.
2. CLOSING CONDITIONS: The Transaction is subject to the following limited
conditions:
(a) approval by the board of directors of the Company and
stockholders pursuant to the requirements of applicable law;
(b) receipt of any material governmental and third party approvals
(including expiration of all applicable waiting periods under
Hart-Scott Rodino, to the extent required);
(c) completion of customary confirmatory business, accounting,
financial, environmental and legal due diligence;
(d) the waiver of any Company anti-takeover provisions including
redemption of the Company's shareholder rights plan and waiver
of Delaware General Corporate Law Section 203; and
------------------- -------------------
CUSIP No. 719153108 13D Page 26 of 28 Pages
------------------- -------------------
(e) the negotiation and execution of a mutually satisfactory
definitive merger agreement and the receipt of disclosure
schedules related thereto in a form reasonably acceptable to
us.
3. FUNDING SOURCES: The Purchaser has sufficient committed capital to finance
the Transaction. The Transaction is not subject to financing.
4. TIMING: The Purchaser is committed to allocating a sufficient amount of
resources and is confident that it will be able to close the Transaction
on an expedited basis. We require no external approvals.
5. CONDUCT OF BUSINESS: We expect that the Company will continue to operate
in the ordinary course of business and consistent with past practices and
that there will be no material adverse change to the Company's financial
condition or results of operation.
6. DUE DILIGENCE: The proposed Transaction is subject to completion to our
satisfaction of customary confirmatory business, accounting, financial,
environmental, and legal due diligence. With the full cooperation of the
Company and based upon information known to us, we would expect to
complete this process in no more than four weeks, if not earlier. Our
required due diligence will be limited to confirmation of information
generally known to us on the assumption that there is no material and
adverse information that the Company has not publicly disclosed.
7. NON-BINDING STATEMENT OF INTENT: This proposal is a statement of intention
only. A legally binding obligation with respect to the proposed
Transaction will arise only upon execution and delivery of definitive
agreements (acceptable to the Company and us), and then only on the terms
and conditions contained therein. We are committed to immediately
negotiating and executing a definitive merger agreement.
8. MANAGEMENt: We are receptive to discussions with senior management about
their future involvement in the business. We intend to speak with senior
management regarding their participation in this Transaction, and would
encourage and welcome their participation, although their participation is
not a condition to closing the Transaction. We are committed to preserving
the relationship of the Company with its employees.
We look forward to working with you to successfully and expeditiously complete
this transaction.
Very truly yours,
/s/ Jeffrey C. Smith
------------------------------
Jeffrey C. Smith
Executive Managing Director
------------------- -------------------
CUSIP No. 719153108 13D Page 27 of 28 Pages
------------------- -------------------
STARBOARD VALUE AND OPPORTUNITY MASTER FUND LTD.
C/O RAMIUS CAPITAL GROUP, L.L.C.
666 THIRD AVENUE, 26TH FLOOR
NEW YORK, NEW YORK 10017
January 16, 2007
BY FACSIMILE, FEDERAL EXPRESS AND FIRST-CLASS MAIL
Phoenix Technologies Ltd.
915 Murphy Ranch Road
Milpitas, California 95035
Attn: Corporate Secretary
Re: SUPPLEMENT TO NOTICE OF SHAREHOLDER NOMINATION FOR ELECTION OF
DIRECTORS FOR THE 2007 ANNUAL MEETING OF SHAREHOLDERS OF PHOENIX
TECHNOLOGIES LTD.
Dear Sir:
This letter shall serve as a supplement to our letter to Phoenix
Technologies Ltd. ("PTEC" or the "Company"), dated December 27, 2006 (the
"Nomination Letter"), and hereby incorporates herein by reference the defined
terms set forth in the Nomination Letter. Except as specifically modified or
supplemented by the information contained in this supplemental notice, all
information set forth in the Nomination Letter remains applicable, including the
Exhibits thereto.
The Nomination Letter served to satisfy the advance notice requirements of
Article I, Section 11 of the Bylaws of PTEC as to the nomination by Starboard of
three nominees for election to Class II of the PTEC Board at the 2007 Annual
Meeting.
As of the date we submitted the Nomination Letter, the Company had not
publicly announced that the PTEC Board had earlier adopted a resolution on
December 19, 2006 reducing the number of authorized directors of the Company
from seven to six and the number of Class II Directors from three to two,
effective immediately prior to the commencement of the 2007 Annual Meeting. This
reduction in the size of the PTEC Board and in the number of Class II directors
was not made publicly available until the filing of the Company's preliminary
proxy materials on January 12, 2007. Having no knowledge that the size of the
PTEC Board had been reduced, we submitted our Nomination Letter for the
nomination and election of three nominees as Class II directors at the 2007
Annual Meeting. We hereby provide notice to the Company of the withdrawal of
Jeffrey C. Smith as a nominee for election as a Class II director at the 2007
Annual Meeting. Therefore, John Mutch and Philip Moyer are Starboard's nominees
for election as Class II directors at the 2007 Annual Meeting.
Starboard continues to reserve the right to nominate additional nominees
for election as directors at the 2007 Annual Meeting to the extent that there
are in excess of two (2) vacancies on the PTEC Board to be filled by election at
the 2007 Annual Meeting or PTEC increases the size of the PTEC Board above its
existing size. Additional nominations made pursuant to the preceding sentence
are without prejudice to the position of Starboard that any attempt to increase
------------------- -------------------
CUSIP No. 719153108 13D Page 28 of 28 Pages
------------------- -------------------
the size of the current PTEC Board or to reconstitute or reconfigure the classes
on which the current directors serve constitutes an unlawful manipulation of
PTEC's corporate machinery.
Please address any correspondence to Starboard Value and Opportunity
Master Fund Ltd., Attention: Jeffrey C. Smith, telephone (212) 845-7955,
facsimile (212) 201-4802 and Owen S. Littman, telephone (212) 201-4841,
facsimile (212) 845-7995 (with a copy to our counsel, Olshan Grundman Frome
Rosenzweig & Wolosky LLP, Park Avenue Tower, 65 East 55th Street, New York, New
York 10022, Attention: Steven Wolosky, Esq., telephone (212) 451-2333, facsimile
(212) 451-2222). The giving of this notice is not an admission that any
purported procedures for notice concerning the nomination of directors to the
Board and submission of business proposals are legal, valid or binding, and
Starboard reserves the right to challenge their validity.
Very truly yours,
STARBOARD VALUE AND OPPORTUNITY
MASTER FUND LTD.
By: /s/ Mark R. Mitchell
-------------------------------
Name: Mark R. Mitchell
Title: Authorized Signatory