-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KvVzqsVrS8NHuupeG6+D8CuWyDyWfXvP632L61TOVRx+5bDAC8sL8oT3vPrSuzQH voOAvLXL75FKo9XDoHGByg== 0000902664-06-002282.txt : 20061020 0000902664-06-002282.hdr.sgml : 20061020 20061020080849 ACCESSION NUMBER: 0000902664-06-002282 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20061020 DATE AS OF CHANGE: 20061020 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: OPTIMAL GROUP INC CENTRAL INDEX KEY: 0001015923 STANDARD INDUSTRIAL CLASSIFICATION: CALCULATING & ACCOUNTING MACHINES (NO ELECTRONIC COMPUTERS) [3578] IRS NUMBER: 980160833 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-50030 FILM NUMBER: 061154372 BUSINESS ADDRESS: STREET 1: 3500 DE MAISONNEUVE BLVD. WEST STREET 2: 2 PLACE ALEXIS-NIHON, SUITE 1700 CITY: MONTREAL STATE: A8 ZIP: H3Z 3C1 BUSINESS PHONE: 5147388885 MAIL ADDRESS: STREET 1: 3500 DE MAISONNEUVE BLVD. WEST STREET 2: 2 PLACE ALEXIS-NIHON, SUITE 1700 CITY: MONTREAL STATE: A8 ZIP: H3Z 3C1 FORMER COMPANY: FORMER CONFORMED NAME: OPTIMAL ROBOTICS CORP DATE OF NAME CHANGE: 19960603 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: CLINTON GROUP INC CENTRAL INDEX KEY: 0001134119 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 32 OLD SLIP 5TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10005 BUSINESS PHONE: 2128250400 SC 13D/A 1 sc13da.txt OPTIMAL GROUP INC. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 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) Under the Securities Exchange Act of 1934 (Amendment No. 2)* Optimal Group Inc. - -------------------------------------------------------------------------------- (Name of Issuer) Class A Shares, no par value - -------------------------------------------------------------------------------- (Title of Class of Securities) 68388R208 - -------------------------------------------------------------------------------- (CUSIP Number) Marc Weingarten, Esq. Schulte Roth & Zabel LLP 919 Third Avenue New York, New York 10022 (212) 756-2000 - -------------------------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) October 19, 2006 - -------------------------------------------------------------------------------- (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. [X] 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 8 Pages) - -------------------------- * The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). - ------------------------------ --------------------- CUSIP NO. 68388R208 SCHEDULE 13D PAGE 2 OF 8 PAGES - ------------------------------ --------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) CLINTON GROUP, INC. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* AF - -------------------------------------------------------------------------------- 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 -0- ---------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY 1,502,562 OWNED BY ---------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON WITH -0- ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 1,502,562 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 1,502,562 - -------------------------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 6.3% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IA; CO - -------------------------------------------------------------------------------- * SEE INSTRUCTIONS - ------------------------------ --------------------- CUSIP NO. 68388R208 SCHEDULE 13D PAGE 3 OF 8 PAGES - ------------------------------ --------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) CLINTON MULTISTRATEGY MASTER FUND, LTD. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] (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 -0- ---------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY 1,502,562 OWNED BY ---------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON WITH -0- ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 1,502,562 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 1,502,562 - -------------------------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 6.3% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO - -------------------------------------------------------------------------------- * SEE INSTRUCTIONS - ------------------------------ --------------------- CUSIP NO. 68388R208 SCHEDULE 13D PAGE 4 OF 8 PAGES - ------------------------------ --------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) GEORGE HALL - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* AF - -------------------------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION UNITED STATES - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER -0- ---------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY 1,502,562 OWNED BY ---------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON WITH -0- ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 1,502,562 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 1,502,562 - -------------------------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 6.3% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN - -------------------------------------------------------------------------------- * SEE INSTRUCTIONS - ------------------------------ --------------------- CUSIP NO. 68388R208 SCHEDULE 13D PAGE 5 OF 8 PAGES - ------------------------------ --------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) CONRAD BRINGSJORD - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* AF - -------------------------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION UNITED STATES - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER -0- ---------------------------------------------------------- NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY 1,502,562 OWNED BY ---------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON WITH -0- ---------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 1,502,562 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 1,502,562 - -------------------------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 6.3% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN - -------------------------------------------------------------------------------- * SEE INSTRUCTIONS - ------------------------------ --------------------- CUSIP NO. 68388R208 SCHEDULE 13D PAGE 6 OF 8 PAGES - ------------------------------ --------------------- The Schedule 13D filed on July 20, 2006 by Clinton Group, Inc., a Delaware corporation ("CGI"), Clinton Multistrategy Master Fund, Ltd., a Cayman Islands company ("CMSF"), Clinton Event Driven Master Fund, Ltd., a Cayman Islands company ("CED"), George Hall and Conrad Bringsjord, relating to the class A shares, without par value (the "Shares"), of Optimal Group Inc. (the "Issuer"), as previously amended by Amendment No. 1 on August 14, 2006, is hereby amended as set forth herein by this Amendment No. 2. CGI, CMSF and Messrs. Hall and Bringsjord are collectively referred to herein as the "Reporting Persons." CED no longer beneficially owns any Shares and, accordingly, is no longer considered a reporting person on this Schedule 13D. ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION. Item 3 is hereby amended and restated as follows: Funds for the purchase of the Shares reported herein were derived from available capital of CMSF. A total of approximately $23,980,890 was paid to acquire such Shares. ITEM 4. PURPOSE OF TRANSACTION. Item 4 of the Schedule 13D is hereby amended by the addition of the following: On October 19, 2006, CGI sent a letter to the Issuer urging the Issuer's board of directors to take steps to return the Company's significant cash position to shareholders in the form of a special dividend or Dutch tender offer and immediately embark on a sale of the Issuer. The letter also stated that, in conjunction with a sale process of the Issuer and to the extent strategic buyers do not demonstrate interest in the Issuer's subsidiary, FireOne Group plc, the Reporting Persons would consider investigating a buyout of such subsidiary, and are prepared to immediately commence the requisite due diligence to that end. A copy of the letter is attached hereto as Exhibit C and is incorporated herein by reference. As previously disclosed, depending on various factors including, without limitation, the Issuer's financial position and strategic direction, the outcome of the discussions and actions referenced herein, actions taken by the board of directors, price levels of the Shares, other investment opportunities available to the Reporting Persons, conditions in the securities market and general economic and industry conditions, the Reporting Persons may in the future take such actions with respect to their investment in the Issuer as they deem appropriate including, without limitation, purchasing additional Shares or selling some or all of their Shares, engaging in short selling of or any hedging or similar transactions with respect to the Shares and/or otherwise changing their intention with respect to any and all matters referred to in Item 4 of Schedule 13D. ITEM 5. INTEREST IN SECURITIES OF THE ISSUER. Paragraphs (a), (b) and (c) of Item 5 of the Schedule 13D are hereby amended and restated as follows: (a) As of 5:30 p.m. on October 19, 2006, the Reporting Persons beneficially owned an aggregate of 1,502,562 Shares, constituting approximately 6.3% of the Shares outstanding. The aggregate percentage of Shares beneficially owned by the Reporting Persons is based upon 23,685,698 Shares outstanding, which is the total number of Shares outstanding as of August 8, 2006 as reported in the Issuer's quarterly report on Form 10-Q for the period ended June 30, 2006. (b) By virtue of an investment management agreement with CMSF, CGI has the power to vote or direct the voting, and to dispose or direct the disposition, of all of the 1,502,562 Shares held by CMSF. By virtue of his direct and indirect control of CGI, George Hall is deemed to have shared voting power and shared dispositive power with respect to all Shares as to which CGI has voting power or dispositive power. By virtue of his position as managing director and senior portfolio manager of CGI, Conrad Bringsjord is also deemed to have shared voting power and shared dispositive power with respect to all Shares as to which CGI has voting power or dispositive power. Accordingly, CGI, Mr. Hall and Mr. Bringsjord are deemed to have shared voting and shared dispositive power with respect to an aggregate of 1,502,562 Shares. - ------------------------------ --------------------- CUSIP NO. 68388R208 SCHEDULE 13D PAGE 7 OF 8 PAGES - ------------------------------ --------------------- (c) The following transactions in the Shares were effected by the Reporting Persons during the past 60 days. Except as otherwise indicated, all of such transactions were effected in the open market. Clinton Event Driven Master Fund, Ltd. Trade Date Shares Purchased (Sold) Price Per Share ---------- ----------------------- --------------- 07-SEP-2006 (6,900) $12.52 25-SEP-2006 (3,051) $12.93 26-SEP-2006 (19,702) $12.98 17-OCT-2006 (42,018)* $9.06 Clinton Multistrategy Master Fund, Ltd. Trade Date Shares Purchased (Sold) Price Per Share ---------- ----------------------- --------------- 21-AUG-2006 16,800 $14.01 22-AUG-2006 7,900 $13.72 23-AUG-2006 11,000 $13.16 24-AUG-2006 3,000 $13.14 25-AUG-2006 10,000 $13.31 25-AUG-2006 7,000 $13.32 28-AUG-2006 5,800 $13.22 28-AUG-2006 8,000 $13.23 29-AUG-2006 17,200 $13.29 30-AUG-2006 10,000 $13.38 31-AUG-2006 11,133 $13.40 01-SEP-2006 15,400 $13.15 05-SEP-2006 4,000 $13.37 06-SEP-2006 23,300 $13.06 07-SEP-2006 4,000 $12.60 11-SEP-2006 6,000 $12.00 20-SEP-2006 17,000 $12.95 27-SEP-2006 (11,174) $14.06 28-SEP-2006 (7,035) $14.02 29-SEP-2006 10,000 $11.85 29-SEP-2006 (178,480) $12.68 29-SEP-2006 (36,761) $12.91 29-SEP-2006 (10,000) $11.83 02-OCT-2006 33,520 $7.89 02-OCT-2006 (81,520) $8.31 02-OCT-2006 (10,000) $8.32 02-OCT-2006 (10,000) $8.18 17-OCT-2006 42,018* $9.06 17-OCT-2006 (9,100) $9.18 19-OCT-2006 (28,200) $9.17 *Internal portfolio redistribution from CED to CMSF. Item 7. MATERIAL TO BE FILED AS EXHIBITS Item 7 of the Schedule 13D is hereby amended by the addition of the following: 4. Exhibit D - Letter to the Issuer, dated October 19, 2006 - --------------------------- ------------------- CUSIP NO. 68388R208 SCHEDULE 13D PAGE 8 OF 8 PAGES - --------------------------- ------------------- SIGNATURES After reasonable inquiry and to the best of his or its knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct. Dated: October 19, 2006 CLINTON GROUP, INC. By: /s/ Francis Ruchalski --------------------------- Name: Francis Ruchalski Title: Comptroller CLINTON MULTISTRATEGY MASTER FUND, LTD. By: Clinton Group, Inc. its investment manager By: /s/ Francis Ruchalski --------------------------- Name: Francis Ruchalski Title: Comptroller /s/ George Hall ------------------------------ George Hall /s/ Conrad Bringsjord ------------------------------ Conrad Bringsjord EX-99 2 exhibit_d.txt EXHIBIT D October 19, 2006 Optimal Group Inc. 3500 de Maisonneuve Blvd. W. Suite 1700 Montreal, Quebec, Canada H3Z 3C1 Neil S. Wechsler Co-Chairman of the Board and Chief Executive Officer Dear Mr. Wechsler: We acknowledge that the unexpected passage of the Unlawful Internet Gambling Enforcement Act of 2006 was a significant setback to the strategic business plan of Optimal Group Inc. ("Optimal" or the "Company") and specifically FireOne Group plc ("FireOne"). Obviously, the growth prospects of the business as well as the overall dynamics of the industry have changed significantly. As such, we urge the board of directors to take steps to return the Company's significant cash position to the shareholders in the form of a special dividend or Dutch tender offer and immediately embark on a sale of the Company. The Company should expand the scope of Genuity Capital Markets' engagement or engage another financial advisor to execute a sale process. We believe this course of action would maximize value to existing shareholders given the current industry dynamics and lack of historical trading volume. Our view is that after the distribution of the cash, Optimal is not of sufficient size to continue as a public entity. In conjunction with a sale process of the Company and to the extent strategic buyers do not demonstrate interest in FireOne, we would consider investigating a buyout of FireOne by Clinton and its affiliates, and we are prepared to immediately commence the requisite due diligence to that end. We believe that FireOne is trading at a level that discounts the inherent valuation of the technology and its growth prospects outside the U.S. market. While the financials were not entirely articulated in the most recent quarterly filing, it appears FireOne has approximately $25 million of non-U.S. revenues, a fact that the market seems to overlook. We trust that the board under your leadership will work expeditiously to consider and review our proposal. We believe Optimal would be an attractive add-on candidate to several larger transaction processors and similar portfolio companies controlled by private equity firms. Our first approach is always to attempt to work constructively with management to share ideas regarding how to deliver value for shareholders, and we have stated that we would possibly participate in certain types of transactions. However, if the board fails to expeditiously pursue our stated course of action, we would consider, among other things, seeking board representation at next year's annual meeting through the election of directors who, subject to their fiduciary duties, are dedicated to maximizing shareholder value through a sale process. If you would like to discuss the above, you or your advisors are free to contact me at 212-377-4224. Sincerely, /s/ Conrad Bringsjord Conrad Bringsjord Portfolio Manager Event Driven and Activist Investments Clinton Group Inc. -----END PRIVACY-ENHANCED MESSAGE-----