-----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, GQBwQKYMsnIV1Rc/aLh/cAJ5YRFkncpTALFEF2YkWx0lnIH+r8uL5jzFVdQrhDKr caawb1DNniBYBjthQFBKZg== 0000950142-05-002108.txt : 20050721 0000950142-05-002108.hdr.sgml : 20050721 20050721133743 ACCESSION NUMBER: 0000950142-05-002108 CONFORMED SUBMISSION TYPE: SC 13D PUBLIC DOCUMENT COUNT: 3 FILED AS OF DATE: 20050721 DATE AS OF CHANGE: 20050721 GROUP MEMBERS: ALVARADO CAPITAL PARTNERS, L.P. GROUP MEMBERS: BKF CAPITAL GROUP, INC. GROUP MEMBERS: JOHN A. LEVIN & CO., INC. GROUP MEMBERS: LEVCO ALTERNATIVE FUND, LTD. GROUP MEMBERS: LEVCO GP, INC. GROUP MEMBERS: PURCHASE ASSOCIATES II, L.P. GROUP MEMBERS: PURCHASE ASSOCIATES, L.P. SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: SHOPKO STORES INC CENTRAL INDEX KEY: 0000878314 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-VARIETY STORES [5331] IRS NUMBER: 410985054 STATE OF INCORPORATION: WI FISCAL YEAR END: 0222 FILING VALUES: FORM TYPE: SC 13D SEC ACT: 1934 Act SEC FILE NUMBER: 005-41879 FILM NUMBER: 05965698 BUSINESS ADDRESS: STREET 1: 700 PILGRIM WAY CITY: GREEN BAY STATE: WI ZIP: 54304 BUSINESS PHONE: 9204972211 MAIL ADDRESS: STREET 1: PO BOX 19060 CITY: GREEN BAY STATE: WI ZIP: 54307-9060 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: LEVIN JOHN A & CO INC /NY/ CENTRAL INDEX KEY: 0000811349 IRS NUMBER: 133134273 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D BUSINESS ADDRESS: STREET 1: ONE ROCKFELLER PLZ 25TH FL CITY: NEW YORK STATE: NY ZIP: 10020 MAIL ADDRESS: STREET 1: ONE ROCKEFELLER PLZ CITY: NEW YORK STATE: NY ZIP: 10020 SC 13D 1 sc13d_shopko.txt SHOPKO, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 13D Under the Securities Exchange Act of 1934 (AMENDMENT NO. ___ )* SHOPKO STORES, INC. (Name of Issuer) COMMON STOCK, PAR VALUE $0.01 SHARE (Title of Class of Securities) 824911101 (CUSIP Number) NORRIS NISSIM, ESQ. JOHN A. LEVIN & CO., INC. ONE ROCKEFELLER PLAZA NEW YORK, NEW YORK 10020 TEL. NO.: (212) 332-8400 (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) with a copy to JOHN C. KENNEDY, ESQ. PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP 1285 AVENUE OF THE AMERICAS NEW YORK, NEW YORK 10019-6064 JULY 14, 2005 (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 which is the subject to 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 .. *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 purposes 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. 824911101 PAGE 2 OF 18 SCHEDULE 13D - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON Levco Alternative Fund, Ltd. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_] (b) [X] - -------------------------------------------------------------------------------- 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 OR ORGANIZATION Cayman Islands - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 1,521,800 NUMBER OF ---------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY 0 OWNED BY ---------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING 1,521,800 PERSON ---------------------------------- WITH 10 SHARED DISPOSITIVE POWER 0 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,521,800 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [X] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 5.1% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON CO - -------------------------------------------------------------------------------- CUSIP NO. 824911101 PAGE 3 OF 18 SCHEDULE 13D - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON Purchase Associates, L.P. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_] (b) [X] - -------------------------------------------------------------------------------- 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 OR ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 93,400 NUMBER OF ---------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY 0 OWNED BY ---------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING 93,400 PERSON ---------------------------------- WITH 10 SHARED DISPOSITIVE POWER 0 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 93,400 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [X] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.3% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON PN - -------------------------------------------------------------------------------- CUSIP NO. 824911101 PAGE 4 OF 18 SCHEDULE 13D - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON Purchase Associates II, L.P. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_] (b) [X] - -------------------------------------------------------------------------------- 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 OR ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 129,000 NUMBER OF ---------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY 0 OWNED BY ---------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING 129,000 PERSON ---------------------------------- WITH 10 SHARED DISPOSITIVE POWER 0 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 129,000 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [X] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.4% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON PN - -------------------------------------------------------------------------------- CUSIP NO. 824911101 PAGE 5 OF 18 SCHEDULE 13D - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON Alvarado Capital Partners, L.P. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_] (b) [X] - -------------------------------------------------------------------------------- 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 OR ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 12,000 NUMBER OF ---------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY 0 OWNED BY ---------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING 12,000 PERSON ---------------------------------- WITH 10 SHARED DISPOSITIVE POWER 0 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 12,000 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [X] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) less than 0.1% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON PN - -------------------------------------------------------------------------------- CUSIP NO. 824911101 PAGE 6 OF 18 SCHEDULE 13D - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON Levco GP, Inc. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_] (b) [X] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS Not Applicable - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [_] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OR ORGANIZATION Cayman Islands - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 234,400 NUMBER OF ---------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY 0 OWNED BY ---------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING 234,400 PERSON ---------------------------------- WITH 10 SHARED DISPOSITIVE POWER 0 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 234,400 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [X] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.7% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON CO - -------------------------------------------------------------------------------- CUSIP NO. 824911101 PAGE 7 OF 18 SCHEDULE 13D - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON John A. Levin & Co., Inc. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_] (b) [X] - -------------------------------------------------------------------------------- 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 OR ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 1,818,400 NUMBER OF ---------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY 0 OWNED BY ---------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING 1,818,400 PERSON ---------------------------------- WITH 10 SHARED DISPOSITIVE POWER 0 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,818,400 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [_] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 6.0% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON IA - -------------------------------------------------------------------------------- CUSIP NO. 824911101 PAGE 8 OF 18 SCHEDULE 13D - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON BKF Capital Group, Inc. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_] (b) [X] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS Not Applicable - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [_] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OR ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 1,818,400 NUMBER OF ---------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY 0 OWNED BY ---------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING 1,818,400 PERSON ---------------------------------- WITH 10 SHARED DISPOSITIVE POWER 0 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,818,400 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [_] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 6.0% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON CO - -------------------------------------------------------------------------------- CUSIP NO. 824911101 PAGE 9 OF 18 This Schedule 13D is being filed on behalf of each of the following persons (each a "Reporting Person" and collectively, the "Reporting Persons"): (i) Levco Alternative Fund, Ltd., a Cayman Islands company ("Levco"), (ii) Purchase Associates, L.P., a Delaware limited partnership ("Purchase"), (iii) Purchase Associates II, L.P., a Delaware limited partnership ("Purchase II"), (iv) Alvarado Capital Partners, L.P., a Delaware limited partnership ("Alvarado"), (v) Levco GP, Inc., a Delaware corporation ("Levco GP"), (vi) John A. Levin & Co., Inc., a Delaware corporation ("Levin & Co.") and (vii) BKF Capital Group, Inc., a Delaware corporation ("BKF"). Item 1. SECURITY AND ISSUER. This Statement on Schedule 13D (the "Schedule 13D") relates to the Common Stock, par value $0.01 per share (the "Common Stock"), of ShopKo Stores, Inc. (the "Issuer"), a Wisconsin corporation. The address of the principal executive office of the Issuer is 700 Pilgrim Way, Green Bay, Wisconsin, 54304. Item 2. IDENTITY AND BACKGROUND. (a), (b), (c) and (f). BKF is a public company that operates entirely through Levin & Co. and its related entities. BKF is the sole shareholder of Levin Management Co., which in turn is the sole shareholder of Levin & Co., which in turn is the sole shareholder of Levco GP. The principal business of Levco GP is to act as general partner of investment partnerships, including Purchase, Purchase II and Alvarado. Levin & Co. is an investment adviser registered under the Investment Advisers Act of 1940, as amended, that specializes in managing equity portfolios for institutional and individual investors primarily in the United States. Levin & Co. acts as an investment adviser to Levco and manages a separate client account which holds the Issuer's Common Stock. The principal business of Levco, Purchase, Purchase II and Alvarado is to acquire, hold and dispose of investments in various companies. Levco is a Cayman Islands company. Purchase, Purchase II and Alvarado are Delaware limited partnerships. Levco GP, Levin & Co. and BKF are Delaware corporations. The principal business address of each of the Reporting Persons, other than Levco, is One Rockefeller Plaza, New York, New York, 10020. The principal business address of Levco is BISYS Hedge Fund Services (Cayman) Limited, c/o Q&H Corporate Services Ltd., Harbour Centre, George Town, Grand Cayman, Cayman Island. (i) The name, business address and principal occupation or employment of each director and controlling person of Levco are as follows:
NAME/TITLE/CITIZENSHIP PRINCIPAL OCCUPATION OR EMPLOYMENT BUSINESS ADDRESS - ---------------------- ---------------------------------- ---------------- Graham H. Cook Managing Director Bison Financial Services Ltd. Director TMF (BVI) Ltd. Bison Court United Kingdom P.O. Box 3460, Road Town Tortola, British Virgin Islands David Ezekiel President and Managing Director International Advisory Services Director International Advisory Services Ltd. United Kingdom Ltd. P.O. Box HM 1760 Hamilton HM HX Bermuda Christopher Wetherhill Chartered Accountant "Baicliff" Director Turtle Bay Crescent United Kingdom Southampton Parish SN 01 Bermuda John A. Levin & Co., Inc Investment Adviser John A. Levin & Co., Inc. Controlling Entity One Rockefeller Plaza Delaware Corporation New York, NY 10020
CUSIP NO. 824911101 PAGE 10 OF 18 (ii) The name, business address and principal occupation or employment of the controlling person of each of Purchase, Purchase II and Alvarado are as follows:
NAME/TITLE/CITIZENSHIP PRINCIPAL OCCUPATION OR EMPLOYMENT BUSINESS ADDRESS - ---------------------- ---------------------------------- ---------------- Levco GP, Inc. Managing General Partner c/o BKF Capital Group, Inc. Controlling Entity One Rockefeller Plaza Delaware Corporation New York, NY 10020
(iii) The name, business address and principal occupation or employment of each executive officer and controlling person of Levco GP are as follows:
NAME/TITLE/CITIZENSHIP PRINCIPAL OCCUPATION OR EMPLOYMENT BUSINESS ADDRESS - ---------------------- ---------------------------------- ---------------- John A. Levin Executive Officer of Levin & Co. John A. Levin & Co., Inc. Chief Executive Officer and its related entities One Rockefeller Plaza United States New York, NY 10020 Glenn A. Aigen Executive Officer of Levin & Co. John A. Levin & Co., Inc. Chief Financial Officer and and its related entities One Rockefeller Plaza Senior Vice President New York, NY 10020 United States Norris Nissim Executive Officer of Levin & Co. John A. Levin & Co., Inc. Vice President and and its related entities One Rockefeller Plaza General Counsel New York, NY 10020 United States Henry L. Levin Executive Officer of Levin & Co. John A. Levin & Co., Inc. Senior Portfolio Manager and its related entities One Rockefeller Plaza United States New York, NY 10020 Frank F. Rango Executive Officer of Levin & Co. John A. Levin & Co., Inc. Senior Portfolio Manager and its related entities One Rockefeller Plaza United States New York, NY 10020 John A. Levin & Co, Inc. Sole Shareholder of Levco GP. John A. Levin & Co., Inc. Controlling Entity One Rockefeller Plaza Delaware Corporation New York, NY 10020
(iv) The name, business address and principal occupation or employment of each director, executive officer and controlling person of Levin & Co. are as follows:
NAME/TITLE/CITIZENSHIP PRINCIPAL OCCUPATION OR EMPLOYMENT BUSINESS ADDRESS - ---------------------- ---------------------------------- ---------------- John A. Levin Executive Officer of Levin & Co. John A. Levin & Co., Inc. Chief Executive Officer and its related entities One Rockefeller Plaza United States New York, NY 10020 Glenn A. Aigen Executive Officer of Levin & Co. John A. Levin & Co., Inc. Chief Financial Officer and and its related entities One Rockefeller Plaza Senior Vice President New York, NY 10020 United States
CUSIP NO. 824911101 PAGE 11 OF 18
NAME/TITLE/CITIZENSHIP PRINCIPAL OCCUPATION OR EMPLOYMENT BUSINESS ADDRESS - ---------------------- ---------------------------------- ---------------- Norris Nissim Executive Officer of Levin & Co. John A. Levin & Co., Inc. Vice President and and its related entities One Rockefeller Plaza General Counsel New York, NY 10020 United States Henry L. Levin Executive Officer of Levin & Co. John A. Levin & Co., Inc. Senior Portfolio Manager and its related entities One Rockefeller Plaza United States New York, NY 10020 Frank F. Rango Executive Officer of Levin & Co. John A. Levin & Co., Inc. Senior Portfolio Manager and its related entities One Rockefeller Plaza United States New York, NY 10020 BKF Capital Group, Inc. Ultimate Sole Shareholder of John A. Levin & Co., Inc. Controlling Entity Levin & Co. One Rockefeller Plaza Delaware Corporation New York, NY 10020
(v) The name, business address and principal occupation or employment of each director, executive officer and controlling person of BKF are as follows:
NAME/TITLE/CITIZENSHIP PRINCIPAL OCCUPATION OR EMPLOYMENT BUSINESS ADDRESS - ---------------------- ---------------------------------- ---------------- John A. Levin Executive Officer of Levin & Co. John A. Levin & Co., Inc. Chief Executive Officer and its related entities One Rockefeller Plaza United States New York, NY 10020 Glenn A. Aigen Executive Officer of Levin & Co. John A. Levin & Co., Inc. Chief Financial Officer and and its related entities One Rockefeller Plaza Senior Vice President New York, NY 10020 United States Norris Nissim Executive Officer of Levin & Co. John A. Levin & Co., Inc. Vice President and and its related entities One Rockefeller Plaza General Counsel New York, NY 10020 United States Ronald LaBow President c/o BKF Capital Group, Inc. Director Stonehill Investment Corp. One Rockefeller Plaza United States New York, NY 10020 Warren G. Lichtenstein President, Chief Executive c/o BKF Capital Group, Inc. Director Officer and Director One Rockefeller Plaza United States Steel Partners, Ltd. New York, NY 10020 Kurt N. Schacht Executive Director c/o BKF Capital Group, Inc. Director CFA Centre for Financial Market One Rockefeller Plaza United States Integrity New York, NY 1002
CUSIP NO. 824911101 PAGE 12 OF 18
NAME/TITLE/CITIZENSHIP PRINCIPAL OCCUPATION OR EMPLOYMENT BUSINESS ADDRESS - ---------------------- ---------------------------------- ---------------- Peter J. Solomon Chairman c/o BKF Capital Group, Inc. Director Peter J. Solomon Company One Rockefeller Plaza United States New York, NY 10020 Dean J. Takahashi Senior Director of Investments c/o BKF Capital Group, Inc. Director Yale University One Rockefeller Plaza United States New York, NY 10020 James S. Tisch Chief Executive Officer c/o BKF Capital Group, Inc. Director Loews Corporation One Rockefeller Plaza United States New York, NY 10020
(d) and (e). During the past five years, neither any Reporting Person nor, to the best knowledge of each Reporting Person, any individual otherwise identified in response to Item 2, has been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or was a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of which any such person was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws. Item 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION. The source of funds for the acquisitions by Levco was the contributions from its shareholders and/or proceeds from investments from such contributions. The source of funds for the acquisitions by Purchase, Purchase II and Alvarado was the contributions from its partners and/or proceeds from investments from such contributions. The acquisitions attributed to Levin & Co. were made by each of Levco, Purchase, Purchase II and Alvarado and an additional managed client account. The source of funds for the acquisitions by the managed client account was the capital of the client. The aggregate purchase price of the 1,521,800 shares of Common Stock owned by Levco was $36,784,376.12. The aggregate purchase price of the 93,400 shares of Common Stock owned by Purchase was $2,258,376.65. The aggregate purchase price of the 129,000 shares of Common Stock owned by Purchase II was $3,117,169.17. The aggregate purchase price of the 12,000 shares of Common Stock owned by Alvarado was $292,193.55. The aggregate purchase price of the 1,818,400 shares of Common Stock beneficially owned by Levin & Co. was $43,951,634.40. Item 4. PURPOSE OF TRANSACTION. On July 14, 2005, the Reporting Persons acquired beneficial ownership of more than 5% of the Issuer's Common Stock. The Reporting Persons have purchased the Common Stock for investment purposes. The present intention of the Reporting Persons is to oppose the Issuer's proposed merger (the "Merger") with Badger Retail Holding, Inc. and Badger Acquisition Corp., affiliates of Goldner Hawn Johnson & Morrison Incorporated, a Minneapolis-based private equity firm. The Reporting Persons are evaluating the option of soliciting proxies in opposition to the Merger and are considering all actions and alternatives available to them. The Reporting Persons have attached as Exhibit 2 to this Schedule 13D a letter, dated July 21, 2005, from Purchase Associates LP, Levco Alternative Fund, Ltd. and certain related entities to the Board of Directors of the Issuer which states, among other things, that they oppose the Merger, as it in not in the best interest of the shareholders, and intend to vote against the Merger. The Reporting Persons intend to evaluate the Issuer's business and prospects and upon future developments (including market prices for the Common Stock, availability and alternative uses of funds, conditions in the securities markets and general economic and industry conditions), the Reporting Persons CUSIP NO. 824911101 PAGE 13 OF 18 may acquire additional shares of Common Stock, sell all or a portion of its shares of Common Stock, now owned or hereafter acquired, or maintain its position at current levels. In addition, the Reporting Persons may formulate other purposes, plans or proposals regarding the Issuer or any of its securities to the extent deemed advisable in light of general investment and trading policies, market conditions or other factors. SECURITY HOLDERS ARE ADVISED TO READ THE PROXY STATEMENT AND OTHER DOCUMENTS RELATED TO SOLICITATION OF PROXIES BY THE REPORTING PERSONS WHEN AND IF THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. WHEN AND IF COMPLETED, A DEFINITIVE PROXY STATEMENT AND A FORM OF PROXY WILL BE MAILED TO STOCKHOLDERS OF THE ISSUER AND WILL BE AVAILABLE AT NO CHARGE AT THE SECURITIES AND EXCHANGE COMMISSION'S WEBSITE AT HTTP://WWW.SEC.GOV. Except as described above, no Reporting Person or any individual otherwise identified in Item 2 of this Schedule 13D has any present plans or proposals which relate to or would result in: (a) the acquisition by any person of additional securities of the Issuer, or the disposition of securities of the Issuer; (b) an extraordinary corporate transaction, such as a merger, reorganization or liquidation, involving the Issuer or any of its subsidiaries; (c) a sale or transfer or a material amount of assets of the Issuer or of any of its subsidiaries; (d) any change in the present board of directors or management of the Issuer, including any plans or proposals to change the number or term of directors or to fill any existing vacancies on the board; (e) any material change in the present capitalization or dividend policy of the Issuer; (f) any other material change in the Issuer's business or corporate structure; (g) changes in the Issuer's charter, bylaws or instruments corresponding thereto or other actions which may impede the acquisition of control of the Issuer by any person; (h) causing a class of securities of the Issuer to be delisted from a national securities exchange or to cease to be authorized to be quoted in an inter-dealer quotation system of a registered national securities association; (i) a class of equity securities of the Issuer becoming eligible for termination of registration pursuant to Section 12(g)(4) of the Securities Exchange Act of 1934; or (j) any action similar to any of those enumerated above. Item 5. INTEREST IN SECURITIES OF THE ISSUER. (a) and (b). The beneficial ownership and ownership percentages set forth herein are as of July 18, 2005. All ownership percentages set forth herein assume that there are 30,113,992 Shares outstanding, based on the total number of shares reported in the Quarterly Report on Form 10-Q of the Issuer for the quarter ending April 30, 2005 to be outstanding as of May 27, 2005. The responses to Items 7, 8, 9, 10, 11 and 13 of the inside cover pages of this Schedule 13D are hereby incorporated by reference in response to this Item 5. BKF is the ultimate sole shareholder of Levin & Co., which in turn is the sole shareholder of Levco GP. Levco GP is the managing general partner of each of Purchase, Purchase II and Alvarado. Levin & Co. is the investment adviser to Levco and manages a separate client account which owns shares of the Issuer's Common Stock. (c) (i) During the past 60 days, Levco(1) has purchased shares of Common Stock in open market transactions on the New York Stock Exchange as follows: SHARES DATE PURCHASED PRICE ---- --------- ----- 06-03-05 115,500 $23.75 06-06-05 468,300 $23.81 06-07-05 62,700 $23.98 CUSIP NO. 824911101 PAGE 14 OF 18 SHARES DATE PURCHASED PRICE ---- --------- ----- 06-09-05 8,400 $24.08 06-09-05 28,300 $24.04 06-14-05 54,000 $23.95 07-01-05 4,600 $24.24 07-05-05 53,600 $24.50 07-06-05 80,700 $24.55 07-07-05 63,200 $24.40 07-08-05 84,300 $24.44 07-11-05 40,000 $24.41 07-12-05 189,300 $24.52 07-14-05 94,300 $24.39 07-15-05 103,400 $24.44 07-18-05 71,200 $24.70 ____________ (1) Levin & Co. and BKF also report beneficial ownership of the shares of Common Stock held by Levco. (ii) During the past 60 days, Purchase(2) has purchased shares of Common Stock in open market transactions on the New York Stock Exchange as follows: SHARES DATE PURCHASED PRICE ---- --------- ----- 06-03-05 6,900 $23.75 06-06-05 28,000 $23.81 06-07-05 3,800 $23.98 06-09-05 500 $24.08 06-09-05 1,700 $24.04 06-14-05 3,200 $23.95 07-01-05 300 $24.24 07-05-05 4,600 $24.50 07-06-05 4,700 $24.55 07-07-05 3,900 $24.40 07-08-05 5,200 $24.44 07-11-05 2,500 $24.41 07-12-05 11,600 $24.52 07-14-05 5,800 $24.39 07-15-05 6,300 $24.44 07-18-05 4,400 $24.70 ____________ (2) Levco GP, Levin & Co. and BKF also report beneficial ownership of the shares of Common Stock held by Purchase. (iii) During the past 60 days, Purchase II (3) has purchased shares of Common Stock in open market transactions on the New York Stock Exchange as follows: SHARES DATE PURCHASED PRICE ---- --------- ----- 06-03-05 10,000 $23.75 06-06-05 40,700 $23.81 06-07-05 5,400 $23.98 06-09-05 700 $24.08 06-09-05 2,400 $24.04 06-14-05 4,700 $23.95 07-01-05 400 $24.24 07-05-05 3,400 $24.50 07-06-05 6,600 $24.55 07-07-05 5,300 $24.40 07-08-05 7,100 $24.44 07-11-05 3,400 $24.41 07-12-05 16,100 $24.52 CUSIP NO. 824911101 PAGE 15 OF 18 SHARES DATE PURCHASED PRICE ---- --------- ----- 07-14-05 8,000 $24.39 07-15-05 8,800 $24.44 07-18-05 6,000 $24.70 ____________ (3) Levco GP, Levin & Co. and BKF also report beneficial ownership of the shares of Common Stock held by Purchase II. (iv) During the past 60 days, Alvarado(4) has purchased shares of Common Stock in open market transactions on the New York Stock Exchange as follows: SHARES DATE PURCHASED PRICE ---- --------- ----- 07-01-05 5,500 $24.24 07-11-05 2,500 $24.41 07-14-05 4,000 $24.46 ____________ (4) Levco GP, Levin & Co. and BKF also report beneficial ownership of the shares of Common Stock held by Alvarado. (v) During the past 60 days, Levin & Co.(5) has purchased shares of Common Stock in open market transactions on the New York Stock Exchange as follows: SHARES DATE PURCHASED PRICE ---- --------- ----- 06-03-05 5,700 $23.75 06-06-05 23,000 $23.81 06-07-05 3,100 $23.98 06-09-05 400 $24.08 06-09-05 1,400 $24.04 06-14-05 2,200 $23.95 07-01-05 200 $24.24 07-07-05 2,600 $24.40 07-08-05 3,400 $24.44 07-11-05 1,600 $24.41 07-12-05 7,700 $24.52 07-14-05 3,800 $24.39 07-15-05 4,200 $24.44 07-18-05 2,900 $24.70 ____________ (5) BKF also report beneficial ownership of the shares of Common Stock held by Levin & Co. (e) Not applicable. Item 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER. Not applicable. Item 7. MATERIAL TO BE FILED AS EXHIBITS. Exhibit 1: Joint Filing Agreement, dated July 21, 2005, among the Reporting Persons. CUSIP NO. 824911101 PAGE 16 OF 18 Exhibit 2: Letter, dated July 21, 2005. CUSIP NO. 824911101 PAGE 17 OF 18 SIGNATURE After reasonable inquiry and to the best of its knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct. Dated: July 21, 2005 LEVCO ALTERNATIVE FUND, LTD. By: John A. Levin & Co., Inc., its investment adviser By: /s/ Norris Nissim ------------------------------------------------ Name: Norris Nissim Title: Vice President and General Counsel PURCHASE ASSOCIATES L.P. By: Levco GP, Inc., its managing general partner By: /s/ Norris Nissim ------------------------------------------------ Name: Norris Nissim Title: Vice President and General Counsel PURCHASE ASSOCIATES II, L.P. By: Levco GP, Inc., its managing general partner By: /s/ Norris Nissim ------------------------------------------------ Name: Norris Nissim Title: Vice President and General Counsel ALVARADO CAPITAL PARTNERS, L.P. By: Levco GP, Inc., its managing general partner By: /s/ Norris Nissim ------------------------------------------------ Name: Norris Nissim Title: Vice President and General Counsel LEVCO GP, INC. By: /s/ Norris Nissim ------------------------------------------------ Name: Norris Nissim Title: Vice President and General Counsel CUSIP NO. 824911101 PAGE 18 OF 18 JOHN A. LEVIN & CO., INC. By: /s/ Norris Nissim ------------------------------------------------ Name: Norris Nissim Title: Vice President and General Counsel BKF CAPITAL GROUP, INC. By: /s/ Norris Nissim ------------------------------------------------ Name: Norris Nissim Title: Vice President and General Counsel EX-99 2 ex-1sc13d_shopko.txt EXHIBIT 1 EXHIBIT 1 --------- JOINT FILING AGREEMENT Each of the undersigned hereby acknowledges and agrees, in compliance with the provisions of Rule 13d-1(k)(1) promulgated under the Securities Exchange Act of 1934, as amended, that the Schedule 13D to which this Agreement is attached as an Exhibit (the "Schedule 13D"), and any amendments thereto, will be filed with the Securities and Exchange Commission jointly on behalf of the undersigned. This Agreement may be executed in one or more counterparts. Dated: July 21, 2005 LEVCO ALTERNATIVE FUND, LTD. By: John A. Levin & Co., Inc., its investment adviser By: /s/ Norris Nissim ------------------------------------------------ Name: Norris Nissim Title: Vice President and General Counsel PURCHASE ASSOCIATES L.P. By: Levco GP, Inc., its managing general partner By: /s/ Norris Nissim ------------------------------------------------ Name: Norris Nissim Title: Vice President and General Counsel PURCHASE ASSOCIATES II, L.P. By: Levco GP, Inc., its managing general partner By: /s/ Norris Nissim ------------------------------------------------ Name: Norris Nissim Title: Vice President and General Counsel ALVARADO CAPITAL PARTNERS, L.P. By: Levco GP, Inc., its managing general partner By: /s/ Norris Nissim ------------------------------------------------ Name: Norris Nissim Title: Vice President and General Counsel LEVCO GP, INC. By: /s/ Norris Nissim ------------------------------------------------ Name: Norris Nissim Title: Vice President and General Counsel JOHN A. LEVIN & CO., INC. By: /s/ Norris Nissim ------------------------------------------------ Name: Norris Nissim Title: Vice President and General Counsel BKF CAPITAL GROUP, INC. By: /s/ Norris Nissim ------------------------------------------------ Name: Norris Nissim Title: Vice President and General Counsel EX-99 3 ex-2sc13d_shopko.txt EXHIBIT 2 EXHIBIT 2 --------- JOHN A. LEVIN & CO., INC. ONE ROCKEFELLER PLAZA 25TH FLOOR NEW YORK, NY 10020 (212) 332-8400 JULY 21, 2005 The Board of Directors c/o ShopKo Stores, Inc. 700 Pilgrim Way Green Bay, Wisconsin 54304 Dear Members of the Board of Directors: We write to you on behalf of Purchase Associates LP, Levco Alternative Fund, Ltd. and certain related entities that own, in the aggregate, approximately 6% of the common stock of ShopKo Stores, Inc. (the "Company"). We are extremely disappointed with your decision to sell the Company to an affiliate of Goldner Hawn Johnson & Morrison ("GHJM") for $24 per share (the "GHJM Transaction"), as we do not believe that all options to maximize shareholder value were fully explored. Most importantly, in our view the Special Committee (the "Committee") apparently failed to adequately consider a leveraged recapitalization of the Company. In our opinion, such a transaction would have delivered shareholder value well in excess of $24 per share. Pursuant to the GHJM Transaction, GHJM is purchasing the Company for approximately $1.1 billion, using just $30 million of equity, or $1 per share. The remaining approximately $1 billion is being financed through debt that is largely secured by the Company's real estate. Based on the size of the loan facility to be secured by the Company's real estate and the appraisal requirement contained in the "alternative real estate loan commitment letter," we believe that the lenders have assumed that the Company's real estate will have an appraised value of approximately $935 million(1). We question why the Committee failed to secure an appraisal of the Company's real estate while evaluating strategic alternatives since it constitutes such a significant portion of the Company's assets. We believe a thorough and diligent process would have included obtaining such an appraisal, which would have permitted the Committee to consider, on a fully informed basis, all recapitalization and other alternatives available to the Company. We believe the $24 per share transaction does not fully reflect the asset value of this Company. To illustrate, we have performed an asset valuation of the Company based on the Company's recent Securities and Exchange Commission filings and the presentation by the Company's financial advisors to the Committee. Our analysis yields an asset value as high as $32.88 per share. - -------------------------------------------------------------------------------- Asset value (millions) Per share(2) - -------------------------------------------------------------------------------- Tangible book value(3) $623 $19.90 - -------------------------------------------------------------------------------- Adjusted tangible asset value from $834 $26.65 Lender assumed Real Estate appraisal (4) - -------------------------------------------------------------------------------- Prescription files(5) $129-$151 $4.12-$4.82 - -------------------------------------------------------------------------------- Continued deferral of tax liability(6) $44 $1.41 - -------------------------------------------------------------------------------- Asset value $1,007-$1,029 $32.18-$32.88 - -------------------------------------------------------------------------------- We have also valued the Company in a recapitalization based on a review of management's base case business plan for the next four years(7). If, for example, the Company would have effected a recapitalization using similar leverage as the GHJM Transaction and therefore paid a $23 special dividend (only $1 less than the GHJM Transaction value), we have attempted to estimate future free cash flows of the business utilizing our assumptions of the interest payments and income tax such a recapitalization would entail. For the next several fiscal years we estimate the following: - -------------------------------------------------------------------------------- ($ in millions, except per share) FY2006 FY2007 FY2008 FY2009 - -------------------------------------------------------------------------------- EBITDA(8) $172 $167 $190 $193 - -------------------------------------------------------------------------------- Estimated interest expense ($76) ($76) ($76) ($76) - -------------------------------------------------------------------------------- Estimated income tax ($3) $0 ($11) ($15) - -------------------------------------------------------------------------------- CapEx(9) ($59) ($61) ($58) ($42) - -------------------------------------------------------------------------------- Free cash flow(10) $34 $30 $45 $60 - -------------------------------------------------------------------------------- Free cash flow per share $1.09 $0.96 $1.44 $1.92 - -------------------------------------------------------------------------------- The foregoing chart illustrates that free cash flow even after leveraging the Company would have been $34 million or $1.09 per share in fiscal year 2006 and would have remained around the same in fiscal year 2007 and improved in the subsequent fiscal years. The Company would have annual free cash flow of more than 100% of the GHJM equity investment. We also believe the way the Committee arrived at the GHJM Transaction may have been flawed. For example, the Company's Chairman at the start of this process, Mr. Jack Eugster, was offered the opportunity to acquire 10% of the equity in this transaction at its apparent attractive valuation, unlike the shareholders. Moreover, Mr. Eugster's pay package could result in payments to him that have the effect of reimbursing him for his entire out of pocket cost associated with his equity investment in the GHJM Transaction. We must also take issue with the $27 million termination fee in the merger agreement, which we believe is excessive relative to the fact that the entire equity contribution in this deal is $30 million. We are even more disturbed that the Company has agreed to a termination fee provision that has the practical effect of inhibiting the shareholders from proposing other, more attractive, alternatives, such as a recapitalization, than the GHJM Transaction. This is because a "no" vote at the shareholder meeting followed by a transaction that is more beneficial to the shareholders could result in a $27 million payment to GHJM. In conclusion, it is not clear that sufficient analysis was done to determine whether certain alternatives, including a recapitalization, would have been more beneficial to shareholders. For the reasons above, we have concluded that we cannot support the proposed transaction and intend to vote against it. We are hopeful that this transaction will not go forward and in this regard we are considering all of the options available to us, including soliciting proxies in opposition to the GHJM Transaction. Finally, we wish to note as shareholders our appreciation of the great work the Company's management and its employees have done and continue to do in operating the business. Sincerely, /s/ Jonathan Reiss /s/ Rosty Raykov Jonathan Reiss Rosty Raykov Portfolio Manager Portfolio Manager - --------------------------- (1) From page 2, Summary of Terms and Conditions for the Secured Term Lending Facility, Exhibit (b) (2), in Schedule 13E-3, filed on June 13, 2005. (2) From page 21, based on the highest share count used by Merrill Lynch in its Discussion Materials presented to the Special Committee on April 7, 2005, Exhibit (c )(9), in Schedule 13E-3. (3) From page 4, intangible assets subtracted from shareholder equity, Condensed Consolidated Balance Sheet of Form 10-Q, filed June 3, 2005. (4) From page 4, intangible assets subtracted from shareholder equity assuming property value of $935 million, Condensed Consolidated Balance Sheet of Form 10-Q, filed June 3, 2005. (5) From page 21 of the Merrill Lynch Discussion Materials to the SpecialCommittee on April 7, 2005, Exhibit (c)(9), in Schedule 13E-3. (6) From page 59, Note E to Consolidated Financial Statement, Form 10-K, Filed April 1, 2005. (7) From management's base case assumption for FY2005-2009 on page 77 of the Preliminary Proxy, Schedule 14A, filed on June 13, 2005. (8) From management's base case assumption for FY2005-2009 on page 77 of the Preliminary Proxy, Schedule 14A, filed on June 13, 2005. (9) From management's base case assumption for FY2005-2009 on page 77 of the Preliminary Proxy, Schedule 14A, filed on June 13, 2005. (10) From management's base case assumption for FY2005-2009 on page 77 of the Preliminary Proxy, Schedule 14A, filed on June 13, 2005. -----END PRIVACY-ENHANCED MESSAGE-----