sec document
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. 1)(1)
The Lamson & Sessions Co.
-------------------------
(Name of Issuer)
Common Stock, No Par Value
--------------------------
(Title of Class of Securities)
513696104
---------
(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 19 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. 513696104 13D Page 2 of 19 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 ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,194,816
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,194,816
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,194,816
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.6%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 513696104 13D Page 3 of 19 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
PARCHE, LLC
--------------------------------------------------------------------------------
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 ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 227,584
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
227,584
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
227,584
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.4%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 513696104 13D Page 4 of 19 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
ADMIRAL ADVISORS, LLC
--------------------------------------------------------------------------------
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 ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,422,400
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,422,400
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,422,400
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IA, OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 513696104 13D Page 5 of 19 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
RAMIUS CAPITAL GROUP, L.L.C.
--------------------------------------------------------------------------------
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 ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,422,400
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,422,400
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,422,400
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IA, OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 513696104 13D Page 6 of 19 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
C4S & CO., L.L.C.
--------------------------------------------------------------------------------
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 ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,422,400
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,422,400
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,422,400
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 513696104 13D Page 7 of 19 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 ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY -0-
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH 1,422,400
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
-0-
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,422,400
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,422,400
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 513696104 13D Page 8 of 19 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 ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY -0-
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH 1,422,400
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
-0-
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,422,400
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,422,400
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 513696104 13D Page 9 of 19 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 ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY -0-
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH 1,422,400
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
-0-
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,422,400
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,422,400
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 513696104 13D Page 10 of 19 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 ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY -0-
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH 1,422,400
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
-0-
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,422,400
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,422,400
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 513696104 13D Page 11 of 19 Pages
---------------------- ----------------------
The following constitutes Amendment No. 1 ("Amendment No. 1") to the
Schedule 13D filed by the undersigned. This Amendment No. 1 amends the Schedule
13D as specifically set forth.
Item 3 is hereby amended and restated as follows:
The Shares purchased by Starboard and Parche were purchased with the
working capital of such entities (which may, at any given time, include margin
loans made by brokerage firms in the ordinary course of business) in open market
purchases, except as otherwise noted, as set forth in Schedule A, which is
incorporated by reference herein. The aggregate purchase cost of the 1,422,400
Shares beneficially owned in the aggregate by all of the Reporting Persons is
approximately $31,302,856, including brokerage commissions.
Item 4 is hereby amended to add the following:
On January 18, 2007, Admiral Advisors, an affiliate of Ramius Capital,
delivered a letter to the President and Chief Executive Officer and the Board of
Directors of the Issuer urging the Board of Directors to immediately hire a
reputable investment bank to fully explore all strategic alternatives to
maximize stockholder value, including both a sale of the Issuer's PVC Pipe
business and a sale of the Issuer. Admiral Advisors also stated in the letter
that it would like to discuss immediate representation on the Issuer's Board of
Directors, and in the event an agreement cannot be reached on Board
representation, Admiral Advisors stated that it intends to nominate directors
for election at the Issuer's upcoming annual meeting of shareholders. The letter
is filed as Exhibit 4 to this Schedule 13D and is 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 15,761,452 Shares outstanding, as of November 7, 2006,
which is the total number of Shares outstanding as reported in the Issuer's
Definitive Proxy Statement on Schedule 14A, filed with the Securities and
Exchange Commission on November 16, 2006.
A. Starboard
(a) As of the date of this filing, Starboard beneficially owns 1,194,816
Shares.
Percentage: Approximately 7.6% as of the date hereof.
(b) 1. Sole power to vote or direct vote: 1,194,816
2. Shared power to vote or direct vote: 0
3. Sole power to dispose or direct the disposition: 1,194,816
4. Shared power to dispose or direct the disposition: 0
(c) The number of Shares acquired by Starboard since the filing of
Schedule 13D is set forth in Schedule A and is incorporated by reference.
---------------------- ----------------------
CUSIP No. 513696104 13D Page 12 of 19 Pages
---------------------- ----------------------
B. Parche
(a) As of the date of this filing, Parche beneficially owns 227,584
Shares.
Percentage: Approximately 1.4% as of the date hereof.
(b) 1. Sole power to vote or direct vote: 227,584
2. Shared power to vote or direct vote: 0
3. Sole power to dispose or direct the disposition: 227,584
4. Shared power to dispose or direct the disposition: 0
(c) The number of Shares acquired by Parche since the filing of Schedule
13D is set forth in Schedule A and is incorporated by reference.
C. Admiral Advisors
(a) As of the date of this filing, as the investment manager of
Starboard and the managing member of Parche, Admiral Advisors may be deemed the
beneficial owner of (i) 1,194,816 Shares owned by Starboard and (ii) 227,584
Shares owned by Parche.
Percentage: Approximately 9.0% as of the date hereof.
(b) 1. Sole power to vote or direct vote: 1,422,400
2. Shared power to vote or direct vote: 0
3. Sole power to dispose or direct the disposition: 1,422,400
4. Shared power to dispose or direct the disposition: 0
(c) Admiral Advisors did not enter into any transactions in the Shares
since the filing of Schedule 13D. The transactions in the Shares since the
filing of Schedule 13D on behalf of Starboard and Parche, which, except as
otherwise noted, were all in the open market, are set forth in Schedule A, and
are incorporated by reference.
D. Ramius Capital
(a) As of the date of this filing, as the sole member of Admiral
Advisors may be deemed the beneficial owner of (i) 1,194,816 Shares owned by
Starboard and (ii) 227,584 Shares owned by Parche.
Percentage: Approximately 9.0% as of the date hereof.
(b) 1. Sole power to vote or direct vote: 1,422,400
2. Shared power to vote or direct vote: 0
3. Sole power to dispose or direct the disposition: 1,422,400
4. Shared power to dispose or direct the disposition: 0
(c) Ramius Capital did not enter into any transactions in the Shares
since the filing of Schedule 13D. The transactions in the Shares since the
filing of Schedule 13D on behalf of Starboard and Parche are set forth in
Schedule A, and are incorporated herein by reference.
---------------------- ----------------------
CUSIP No. 513696104 13D Page 13 of 19 Pages
---------------------- ----------------------
E. C4S
(a) As of the date of this filing, as the managing member of Ramius
Capital, C4S may be deemed the beneficial owner of (i) 1,194,816 Shares owned by
Starboard and (ii) 227,584 Shares owned by Parche.
Percentage: Approximately 9.0% as of the date hereof.
(b) 1. Sole power to vote or direct vote: 1,422,400
2. Shared power to vote or direct vote: 0
3. Sole power to dispose or direct the disposition: 1,422,400
4. Shared power to dispose or direct the disposition: 0
(c) C4S did not enter into any transactions in the Shares since the
filing of Schedule 13D. The transactions in the Shares since the filing of
Schedule 13D on behalf of Starboard and Parche are set forth in Schedule A and
are incorporated herein by reference.
F. Mr. Cohen, Mr. Stark, Mr. Strauss and Mr. Solomon
(a) As of the date of this filing, as the managing members of C4S, each
of Mr. Cohen, Mr. Stark, Mr. Strauss and Mr. Solomon may be deemed the
beneficial owner of (i) 1,194,816 Shares owned by Starboard and (ii) 227,584
Shares owned by Parche. Each of Messrs. Cohen, Stark, Solomon and Strauss share
voting and dispositive power with respect to the Shares owned by Starboard and
Parche by virtue of their shared authority to vote and dispose of such Shares.
Messrs. Cohen, Stark, Solomon and Strauss disclaim beneficial ownership of such
Shares.
Percentage: Approximately 9.0% as of the date hereof.
(b) 1. Sole power to vote or direct vote: 0
2. Shared power to vote or direct vote: 1,422,400
3. Sole power to dispose or direct the disposition: 0
4. Shared power to dispose or direct the disposition: 1,422,400
(c) None of Mr. Cohen, Mr. Stark, Mr. Strauss or Mr. Solomon has entered
into any transactions in the Shares since the filing of Schedule 13D. The
transactions in the Common Stock since the filing of Schedule 13D on behalf of
Starboard and Parche are set forth in Schedule A and are incorporated herein by
reference.
(d) No person other than the Reporting Persons is known to have the
right to receive, or the power to direct the receipt of dividends from, or
proceeds from the sale of, such shares of the Common Stock.
(e) Not applicable.
---------------------- ----------------------
CUSIP No. 513696104 13D Page 14 of 19 Pages
---------------------- ----------------------
Item 7 is hereby amended to include the following exhibits:
4. Letter from Admiral Advisors to the President and Chief Executive
Officer and Board of Directors of the Issuer, dated January 18,
2007.
---------------------- ----------------------
CUSIP No. 513696104 13D Page 15 of 19 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 18, 2007
STARBOARD VALUE AND OPPORTUNITY ADMIRAL ADVISORS, LLC
MASTER FUND LTD. By: Ramius Capital Group, L.L.C.,
its managing member
PARCHE, LLC
By: Admiral Advisors, LLC, its RAMIUS CAPITAL GROUP, L.L.C.
managing member By: C4S & Co., L.L.C.,
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
---------------------- ----------------------
CUSIP No. 513696104 13D Page 16 of 19 Pages
---------------------- ----------------------
SCHEDULE A
----------
Transactions in the Shares Since the Filing of Schedule 13D
-----------------------------------------------------------
Shares of Common Stock Price Per Date of
Purchased Share($) Purchase
---------------------- --------- --------
STARBOARD VALUE AND OPPORTUNITY MASTER FUND LTD.
------------------------------------------------
42,000 23.4549 01/09/07
18,900 23.5467 01/10/07
42,000 23.7476 01/11/07
252,000 23.3092 01/16/07
58,800 23.4004 01/17/07
PARCHE, LLC
-----------
8,000 23.4549 01/09/07
3,600 23.5467 01/10/07
8,000 23.7476 01/11/07
48,000 23.3092 01/16/07
11,200 23.4004 01/17/07
---------------------- ----------------------
CUSIP No. 513696104 13D Page 17 of 19 Pages
---------------------- ----------------------
EXHIBIT INDEX
-------------
Exhibit Page
------- ----
4. Letter from Admiral Advisors to the President and Chief
Executive Officer and Board of Directors of the Issuer,
dated January 18, 2007 18 to 19
---------------------- ----------------------
CUSIP No. 513696104 13D Page 18 of 19 Pages
---------------------- ----------------------
ADMIRAL ADVISORS, LLC LETTERHEAD
January 18, 2007
Michael Merriman
The Lamson & Sessions Co.
President and CEO
25701 Science Park Drive
Cleveland, OH 44122
CC: Board of Directors
Dear Michael,
We continue to believe The Lamson & Sessions Co. ("LMS" or the "Company") is
significantly undervalued. Since our initial 13D filing on December 5, 2006, we
have increased our ownership stake to 9.0% of the Company's shares outstanding,
making us the largest stockholder of LMS. We remain steadfast in our commitment
to this investment and our conviction about the value opportunity. To realize
this value for all stockholders, we urge the Board to immediately hire a
reputable investment bank to fully explore all strategic alternatives, including
both a sale of the PVC Pipe business and a sale of the entire company.
Recent events have confirmed our belief that in order to maximize value at LMS,
the PVC Pipe business must, and can, be sold. When we met with you and Jim Abel
in Cleveland on December 15, 2006, just two weeks prior to the end of the fourth
quarter, you mentioned to us that over the past several years the Company has
made significant operational improvements in the PVC Pipe business and,
therefore, the PVC Pipe business would no longer be in a position to lose money,
even in cyclical troughs. Based on the January 16, 2007 earnings
pre-announcement, however, it is clear that the PVC Pipe business did lose
money. The shortfall in the Company's fourth quarter operating results was due
entirely to the PVC Pipe business, which generated a loss of between $1 million
and $2 million. We are concerned that management does not have a clear handle on
the PVC Pipe business and its potential impact on consolidated performance and
valuation. Further, the volatility associated with this business will continue
to demand management's increased attention. The PVC Pipe business should be
sold, and, in the current market environment, it can be sold.
On January 16, 2007, PW Eagle, Inc., a competitor in the PVC pipe market
("PWEI"), announced a definitive agreement to be acquired by J-M Manufacturing
Company, Inc. for $33.50 per share. Based on analyst estimates, this purchase
price represents an Enterprise Value / Normalized EBITDA multiple of between
6.4x and 7.0x. The successful sale of PWEI further demonstrates the current
market demand for assets similar to LMS' PVC Pipe business. As you may recall,
during several discussions with you and Jim, we discussed the potential value of
LMS' PVC Pipe business. Much of those discussions centered on bipartisan
speculation as to whether market value multiples for PWEI, the closest pure-play
---------------------- ----------------------
CUSIP No. 513696104 13D Page 19 of 19 Pages
---------------------- ----------------------
publicly traded comparable, were near realizable value. Based on the positive
outcome of the sale process to a strategic buyer, the multiple paid for that
business, and your previously expressed opinion on PW Eagle's market value, it
should be obvious that the Company's view of the current mergers and
acquisitions landscape may be stale. Demand for good assets continues to be
strong and LMS has a terrific opportunity to sell an asset that continues to
hinder value for stockholders. This data point firmly supports the analysis we
provided in our prior letter to you, dated December 4, 2006, that stated our
belief that LMS' PVC Pipe business could be sold in a range of 5.0x - 7.0x
normalized EBITDA, representing gross proceeds of up to $70 million. Assuming a
$70 million value for the PVC Pipe business, coupled with the analysis of the
value of the other businesses set forth in our letter dated December 4, 2006,
would imply a range of value for LMS shares of between $30 and $35.
We are cognizant of the potential structural issues surrounding a sale of the
PVC Pipe business. However, we feel that this is not a compelling reason for not
hiring an advisor to explore a sale or disposition but, rather, an additional
impetus for seeking expert advice. Regardless of any structural challenges or
opportunities, the Company's stock price is deeply discounted in the market
today and we believe that this situation can and must be remedied. If management
and the Board determine after conducting a thorough analysis that the PVC Pipe
business represents a core piece of the consolidated LMS business and should not
be separated from Carlon and Lamson Home Products, then the Company should
immediately explore a value-maximizing event through the sale of the entire
Company.
We would also like to take this opportunity to reiterate our view that given the
material valuation discount ascribed to LMS, the Company should be using its
resources to focus on maximizing the value of its current assets and should not
be exploring acquisitions either in cash or in stock.
We hope that our dialogue will remain constructive as we believe the Board and
the stockholders' interests should be aligned in maximizing value for all
stockholders. We look forward to working with management and the Board to help
evaluate these critical and time-sensitive decisions. To effectively work with
the Company, it makes sense at this time to discuss immediate and meaningful
representation on the Board so we can ensure that the best interests of all
stockholders are represented. In the event we cannot reach agreement on
representation and a clear direction for the Company, we intend to nominate
directors for election at the upcoming annual meeting.
In addition to continuing our dialogue with management, we would welcome direct
contact with any of the current members of the Board of Directors and trust that
the best interests of all stockholders will remain of paramount importance.
Best Regards,
/s/ Jeffrey C. Smith
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Jeffrey C. Smith
Executive Managing Director
Ramius Capital Group