-----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, QwJecBxYCh2MmMFJ9Ea7+iOXnaQg4sHQVUWPhMc9alevBGhvcniJL0BF7M+mecb+ 71IHMLDHm+aaxc0hVFkPig== 0000927016-03-001837.txt : 20030415 0000927016-03-001837.hdr.sgml : 20030415 20030415132815 ACCESSION NUMBER: 0000927016-03-001837 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20030415 GROUP MEMBERS: HIGHFIELDS CAPITAL LTD GROUP MEMBERS: HIGHFIELDS GP LLC GROUP MEMBERS: JONATHON S JACOBSON GROUP MEMBERS: RICHARD L GRUBMAN FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: HIGHFIELDS CAPITAL MANAGEMENT LP CENTRAL INDEX KEY: 0001079563 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 200 CLARENDON STREET 51ST FLOOR CITY: BOSTON STATE: MA ZIP: 02117 BUSINESS PHONE: 6178507500 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: JANUS CAPITAL GROUP INC CENTRAL INDEX KEY: 0001065865 STANDARD INDUSTRIAL CLASSIFICATION: FINANCE SERVICES [6199] IRS NUMBER: 431804048 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-60963 FILM NUMBER: 03650103 BUSINESS ADDRESS: STREET 1: 100 FILLMORE STREET CITY: DENVER STATE: CO ZIP: 80206-4928 BUSINESS PHONE: 3033333863 MAIL ADDRESS: STREET 1: 100 FILLMORE STREET CITY: DENVER STATE: CO ZIP: 80206-4928 FORMER COMPANY: FORMER CONFORMED NAME: FAM HOLDINGS INC DATE OF NAME CHANGE: 19980710 FORMER COMPANY: FORMER CONFORMED NAME: STILWELL FINANCIAL INC DATE OF NAME CHANGE: 19990806 SC 13D/A 1 dsc13da.txt SCH 13D/A #7 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 13D/A (Amendment No. 7) Under the Securities Exchange Act of 1934 JANUS CAPITAL GROUP, INC. (formerly Stilwell Financial Inc.) (Name of issuer) Common Stock, $0.01 Par Value Per Share (Title of class of securities) 47102X105 ----------- (CUSIP number) Joseph F. Mazzella, General Counsel Highfields Capital Management LP 200 Clarendon Street Boston, MA (617) 850-7500 (Name, address and telephone number of person authorized to receive notices and communications) April 15, 2003 ----------------- (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 [_]. (Continued on the 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 or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act. - ------------------------ ------------------------ CUSIP No. 47102X105 13D/A Page 2 of 8 pages - ------------------------ ------------------------ - -------------------------------------------------------------------------------- NAMES OF REPORTING PERSONS 1 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS. Highfields Capital Management LP - -------------------------------------------------------------------------------- CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP 2 (a) [_] (b) [_] - -------------------------------------------------------------------------------- SEC USE ONLY 3 - -------------------------------------------------------------------------------- SOURCE OF FUNDS 4 AF - -------------------------------------------------------------------------------- CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [_] 5 - -------------------------------------------------------------------------------- CITIZENSHIP OR PLACE OF ORGANIZATION 6 Delaware - -------------------------------------------------------------------------------- SOLE VOTING POWER 7 NUMBER OF 21,734,787 SHARES ------------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 OWNED BY None ------------------------------------------------------------- EACH SOLE DISPOSITIVE POWER 9 REPORTING 21,734,787 PERSON ------------------------------------------------------------- SHARED DISPOSITIVE POWER WITH 10 None - -------------------------------------------------------------------------------- AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11 21,734,787 - -------------------------------------------------------------------------------- CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES 12 [_] - -------------------------------------------------------------------------------- PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 9.1% (1) - -------------------------------------------------------------------------------- TYPE OF REPORTING PERSON 14 PN - -------------------------------------------------------------------------------- (1) All percentages herein are based upon the Issuer's announcement that issued and outstanding shares of Common Stock increased to approximately 239,100,000 as of March 12, 2003. - ------------------------ ------------------------ CUSIP No. 47102X105 13D/A Page 3 of 8 pages - ------------------------ ------------------------ - -------------------------------------------------------------------------------- NAMES OF REPORTING PERSONS 1 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS. Highfields GP LLC - -------------------------------------------------------------------------------- CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP 2 (a) [_] (b) [_] - -------------------------------------------------------------------------------- SEC USE ONLY 3 - -------------------------------------------------------------------------------- SOURCE OF FUNDS 4 AF - -------------------------------------------------------------------------------- CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [_] 5 - -------------------------------------------------------------------------------- CITIZENSHIP OR PLACE OF ORGANIZATION 6 Delaware - -------------------------------------------------------------------------------- SOLE VOTING POWER 7 NUMBER OF 21,734,787 SHARES ------------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 OWNED BY None ------------------------------------------------------------- EACH SOLE DISPOSITIVE POWER 9 REPORTING 21,734,787 PERSON ------------------------------------------------------------- SHARED DISPOSITIVE POWER WITH 10 None - -------------------------------------------------------------------------------- AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11 21,734,787 - -------------------------------------------------------------------------------- CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES 12 [_] - -------------------------------------------------------------------------------- PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 9.1% (1) - -------------------------------------------------------------------------------- TYPE OF REPORTING PERSON 14 OO - -------------------------------------------------------------------------------- (1) All percentages herein are based upon the Issuer's announcement that issued and outstanding shares of Common Stock increased to approximately 239,100,000 as of March 12, 2003. - ------------------------ ------------------------ CUSIP No. 47102X105 13D/A Page 4 of 8 pages - ------------------------ ------------------------ - ------------------------------------------------------------------------------- NAMES OF REPORTING PERSONS 1 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS. Highfields Capital Ltd. - -------------------------------------------------------------------------------- CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP 2 (a) [_] (b) [_] - -------------------------------------------------------------------------------- SEC USE ONLY 3 - -------------------------------------------------------------------------------- SOURCE OF FUNDS 4 WC - -------------------------------------------------------------------------------- CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [_] 5 - -------------------------------------------------------------------------------- CITIZENSHIP OR PLACE OF ORGANIZATION 6 Cayman Islands, B.W.I. - -------------------------------------------------------------------------------- SOLE VOTING POWER 7 NUMBER OF 15,124,339 SHARES ------------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 OWNED BY None ------------------------------------------------------------- EACH SOLE DISPOSITIVE POWER 9 REPORTING 15,124,339 PERSON ------------------------------------------------------------- SHARED DISPOSITIVE POWER WITH 10 None - -------------------------------------------------------------------------------- AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11 15,124,339 - -------------------------------------------------------------------------------- CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES 12 [-] - -------------------------------------------------------------------------------- PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 6.3% (1) - -------------------------------------------------------------------------------- TYPE OF REPORTING PERSON 14 CO - -------------------------------------------------------------------------------- (1) All percentages herein are based upon the Issuer's announcement that issued and outstanding shares of Common Stock increased to approximately 239,100,000 as of March 12, 2003. - ------------------------ ------------------------ CUSIP No. 47102X105 13D/A Page 5 of 8 pages - ------------------------ ------------------------ - ------------------------------------------------------------------------------ NAMES OF REPORTING PERSONS 1 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS. Jonathon S. Jacobson - ------------------------------------------------------------------------------ CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP 2 (a) [_] (b) [_] - ------------------------------------------------------------------------------ SEC USE ONLY 3 - ------------------------------------------------------------------------------ SOURCE OF FUNDS 4 AF - ------------------------------------------------------------------------------ CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [_] 5 - ------------------------------------------------------------------------------ CITIZENSHIP OR PLACE OF ORGANIZATION 6 United States - ------------------------------------------------------------------------------ SOLE VOTING POWER 7 NUMBER OF 21,734,787 SHARES ----------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 OWNED BY None ----------------------------------------------------------- EACH SOLE DISPOSITIVE POWER 9 REPORTING 21,734,787 PERSON ----------------------------------------------------------- SHARED DISPOSITIVE POWER WITH 10 None - ------------------------------------------------------------------------------ AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11 21,734,787 - ------------------------------------------------------------------------------ CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES 12 [_] - ------------------------------------------------------------------------------ PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 9.1% (1) - ------------------------------------------------------------------------------ TYPE OF REPORTING PERSON 14 IN - ------------------------------------------------------------------------------ (1) All percentages herein are based upon the Issuer's announcement that issued and outstanding shares of Common Stock increased to approximately 239,100,000 as of March 12, 2003. - ------------------------ ------------------------ CUSIP No. 47102X105 13D/A Page 6 of 8 pages - ------------------------ ------------------------ - ------------------------------------------------------------------------------ NAMES OF REPORTING PERSONS 1 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS. Richard L. Grubman - ------------------------------------------------------------------------------ CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP 2 (a) [_] (b) [_] - ------------------------------------------------------------------------------ SEC USE ONLY 3 - ------------------------------------------------------------------------------ SOURCE OF FUNDS 4 AF - ------------------------------------------------------------------------------ CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [_] 5 - ------------------------------------------------------------------------------ CITIZENSHIP OR PLACE OF ORGANIZATION 6 United States - ------------------------------------------------------------------------------ SOLE VOTING POWER 7 NUMBER OF 21,734,787 SHARES ----------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 OWNED BY None ----------------------------------------------------------- EACH SOLE DISPOSITIVE POWER 9 REPORTING 21,734,787 PERSON ----------------------------------------------------------- SHARED DISPOSITIVE POWER WITH 10 None - ------------------------------------------------------------------------------ AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11 21,734,787 - ------------------------------------------------------------------------------ CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES 12 [_] - ------------------------------------------------------------------------------ PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 9.1% (1) - ------------------------------------------------------------------------------ TYPE OF REPORTING PERSON 14 IN - ------------------------------------------------------------------------------ (1) All percentages herein are based upon the Issuer's announcement that issued and outstanding shares of Common Stock increased to approximately 239,100,000 as of March 12, 2003. - ------------------------ ------------------------ CUSIP No. 47102X105 13D/A Page 7 of 8 pages - ------------------------ ------------------------ This Amendment No. 7 to Schedule 13D ("Amendment No. 7") amends and supplements the Statement on Schedule 13D, filed on November 7, 2002, by Highfields Capital Management LP, Highfields GP LLC, Highfields Capital Ltd., Jonathon S. Jacobson and Richard L. Grubman, as amended on November 25, 2002, December 2, 2002, December 13, 2002, December 16, 2002, January 24, 2003 and April 10, 2003 (the "Schedule 13D")as regards the common stock of Stilwell Financial Inc., subsequently renamed Janus Capital Group, Inc. by reason of a merger effected on January 1, 2003. This Amendment No. 7 is being filed to supplement Item 4 hereof. Except as herein supplemented or amended, all other information in the Schedule 13D is as set forth therein. All capitalized terms used herein and not otherwise defined shall have the meanings ascribed thereto in the Schedule 13D. Item 4. Purpose of Transaction. By letter dated April 15, 2003, the Reporting Persons responded to the Issuer's position that omission of key executive compensation information from the Company's Proxy Statement was justified by tax planning considerations, and that a former employee satisfied NYSE director independence standards. A copy of such letter is attached hereto as Exhibit 99.3 Item 7. Material to be Filed as Exhibits. The following documents are filed as exhibits to this Schedule 13D. Exhibit 99.3 Letter from Highfields to Landon Rowland, Chairman of the Board, dated April 15, 2003. - ----------------------- ------------------------ CUSIP No. 47102X105 13D/A Page 8 of 8 pages - ----------------------- ------------------------ SIGNATURES After reasonable inquiry and to the best of his, her or its knowledge and belief, each of the persons signing below certifies that the information set forth in this statement is true, complete and correct. Date: April 15, 2003 HIGHFIELDS CAPITAL MANAGEMENT LP By: Highfields GP LLC, its General Partner /s/ Richard L. Grubman --------------------------------------------- Signature Richard L. Grubman, Authorized Signatory --------------------------------------------- Name/Title HIGHFIELDS GP LLC /s/ Richard L. Grubman --------------------------------------------- Signature Richard L. Grubman, Authorized Signatory --------------------------------------------- Name/Title HIGHFIELDS CAPITAL LTD. By: Highfields Capital Management LP, its Investment Manager By: Highfields GP LLC, its General Partner /s/ Richard L. Grubman --------------------------------------------- Signature Richard L. Grubman, Authorized Signatory --------------------------------------------- Name/Title JONATHON S. JACOBSON /s/ Richard L. Grubman --------------------------------------------- Signature Richard L. Grubman, Attorney-in-fact --------------------------------------------- Name/Title RICHARD L. GRUBMAN /s/ Richard L. Grubman --------------------------------------------- Signature EX-99.3 3 dex993.txt LETTER TO LANDON ROWLAND April 15, 2003 Exhibit 99.3 BY FAX Mr. Landon Rowland Chairman of the Board Janus Capital Group Inc. 100 Fillmore Street Denver, MA 80206 Dear Landon, Thank you for your letter of April 14, which attempts to address a few of the points outlined in our letter dated April 10; we assume that you do not dispute the rest. Please allow me to provide a brief rebuttal to each of the "explanations" you did provide. From your description of tax motivations that caused the Company to select January 1, 2003, as the date Mr. Whiston would officially assume the post of CEO, we take it that the old management team at Stilwell stayed on as `window dressing' through the end of 2002. At the same time current management was running the Company's dominant subsidiary, which pending the merger announced September 3, 2002, effectively constituted the Company. That this was done to render their compensation in 2002 deductible for tax purposes does not absolve you of the duty to disclose what these people were paid. Tax considerations aside, shareholders have a right to know the details of compensation both because of the widespread belief that Janus managers are excessively paid on a per capita basis as compared to their industry peers and the fact that you are asking shareholders to approve cash and stock incentive plans for these same individuals. You defend the proxy footnote about compensation to certain non-executives being higher than that paid to corporate officers by saying it is not new. This also misses the point. The boilerplate language is conveniently being used in this year's proxy to justify omitting material compensation disclosure. What you fail to address is why none of Janus's current employees (executives, subsidiary executives or otherwise) are listed in the table, yet are to be beneficiaries of the various incentive programs you expect shareholders to approve. As to James Craig's independence, current management has told us on more than one occasion that, given the proximity of Mr. Craig's employment at Janus, he is not an independent director. This new claim that he meets NYSE independence standards is exactly the kind of linguistic trickery that we described in our last letter. In making it you don't mention that you are taking advantage of NYSE transitional relief that allows you to delay implementing the five-year employment disqualification that would otherwise apply. We are surprised that you would rely upon such a loophole in representing that Mr. Craig is independent. Your statement that no Janus employees had "approval rights over the Company's board of directors or compensation or benefit plans" is flatly contrary to the plain terms of the Merger Agreement. In fact, the actual changes in the Board that you describe (in October 2002, December 2002 and March 2003) exactly match the extent and the order of Director changes called for in that August 2002 Agreement. Of course, had the Company complied with its legal obligation to file the Agreement with its November 2002 Form 10-Q, shareholders would have had the opportunity to make their own judgment on this issue. Even now the Company seems insistent on denying shareholders ready (and required) access to documents and information to make their own evaluation. We'll leave it to members of the public who go to the trouble of requesting this document from the Colorado Secretary of State and to the regulators to determine whether full and fair disclosure has been served in this instance. And therein lies the real issue. The Company continues to expend more effort on withholding information than providing it. It is ironic that in one of its first investor presentations, on November 21, 2002, new management expressed its commitment to greater transparency and accountability to shareholders. Apparently, Janus is another example of a company in favor of better corporate governance so long as it applies only to others. It's no wonder that the SEC announced just yesterday a major initiative to require stricter compliance with the proxy rules and respect of shareholder rights. In light of the foregoing, we do not consider your explanations sufficient. We stand by our assertion of April 10 that the proxy remains both incomplete and misleading. We submit that the Company's time would have been better spent amending the Proxy Statement to remedy the deficiencies instead of providing hollow rationalizations for its omissions. We hope that rather than responding to us with further excuses, you will respond to all shareholders with a more complete proxy. The time is long overdue for the Company to provide shareholders with complete information rather than continue to defend its absence. Sincerely, Jonathon S. Jacobson Managing Director cc: Board of Directors -----END PRIVACY-ENHANCED MESSAGE-----