-----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, KdtaqPpAODOqvIwgSS/wXNyHvDwC87n7iIMCDMMnNfE//2qMs835o7gRUWozqeKl 4vyvyajHMU2KdKD9On3uOg== 0000950136-04-000352.txt : 20040211 0000950136-04-000352.hdr.sgml : 20040211 20040211172755 ACCESSION NUMBER: 0000950136-04-000352 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 5 FILED AS OF DATE: 20040211 GROUP MEMBERS: CHANNEL PARTNERSHIP II, L.P. GROUP MEMBERS: JOSHUA LANDES GROUP MEMBERS: NELSON OBUS GROUP MEMBERS: WYNNEFIELD CAPITAL MANAGEMENT, LLC GROUP MEMBERS: WYNNEFIELD CAPITAL, INC. GROUP MEMBERS: WYNNEFIELD CAPITAL, INC. PROFIT SHARING & GROUP MEMBERS: WYNNEFIELD PARTNERS SMALL CAP VALUE L.P. I GROUP MEMBERS: WYNNEFIELD PARTNERS SMALL CAP VALUE, L.P. GROUP MEMBERS: WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND, LTD. SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: LAYNE CHRISTENSEN CO CENTRAL INDEX KEY: 0000888504 STANDARD INDUSTRIAL CLASSIFICATION: CONSTRUCTION SPECIAL TRADE CONTRACTORS [1700] IRS NUMBER: 480920712 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-43628 FILM NUMBER: 04587445 BUSINESS ADDRESS: STREET 1: 1900 SHAWNEE MISSION PKWY CITY: MISSION WOODS STATE: KS ZIP: 66205-2001 BUSINESS PHONE: 9133620510 MAIL ADDRESS: STREET 1: 1900 SHAWNEE MISSION PKWY CITY: MISSION WOODS STATE: KS ZIP: 66205-2001 FORMER COMPANY: FORMER CONFORMED NAME: LAYNE INC DATE OF NAME CHANGE: 19930328 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: WYNNEFIELD PARTNERS SMALL CAP VALUE LP CENTRAL INDEX KEY: 0000899083 IRS NUMBER: 133688497 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: ONE PENN PLAZA STREET 2: SUITE 4720 CITY: NEW YORK STATE: NY ZIP: 10119 BUSINESS PHONE: 2127600814 MAIL ADDRESS: STREET 1: ONE PENN PLAZA STREET 2: SUITE 4720 CITY: NEW YORK STATE: NY ZIP: 10119 SC 13D/A 1 file001.txt AMENDMENT NO. 2 TO SCHEDULE 13D UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 13D (AMENDMENT NO. 2) Under the Securities Exchange Act of 1934 LAYNE CHRISTENSEN COMPANY - -------------------------------------------------------------------------------- (Name of Issuer) Common Stock, $.01 par value - -------------------------------------------------------------------------------- (Title of Class of Securities) 521050104 - -------------------------------------------------------------------------------- (CUSIP Number) Wynnefield Partners Small Cap Value, L.P. 450 Seventh Avenue New York, New York 10123 Attention: Mr. Nelson Obus (212) 760-0134 - -------------------------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) Copy to: Jeffrey S. Tullman, Esq. Kane Kessler PC 1350 Avenue of the Americas New York, New York 10019 (212) 541-6222 February 4, 2004 - -------------------------------------------------------------------------------- (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 of this Schedule 13D, and is filing this schedule because of ss.ss 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box [ ]. SCHEDULE 13D - ----------------------- ----------------------- CUSIP NO. 521050104 Page 2 of 13 Pages - ----------------------- ----------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Wynnefield Partners Small Cap Value L.P. 13-3688497 - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a) [ ] (b) [X] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 318,500 NUMBER OF --------------------------------------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY OWNED BY 0 EACH --------------------------------------------------------------- REPORTING 9 SOLE DISPOSITIVE POWER PERSON WITH 318,500 --------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 0 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 318,500 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 2.6% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! SCHEDULE 13D - ----------------------- ----------------------- CUSIP NO. 521050104 Page 3 of 13 Pages - ----------------------- ----------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Wynnefield Small Cap Value Offshore Fund, Ltd. (No IRS Identification No.) - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a) [ ] (b) [X] - -------------------------------------------------------------------------------- 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 186,800 NUMBER OF --------------------------------------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY OWNED BY 0 EACH --------------------------------------------------------------- REPORTING 9 SOLE DISPOSITIVE POWER PERSON WITH 186,800 --------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 0 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 186,800 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 1.5% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! SCHEDULE 13D - ----------------------- ----------------------- CUSIP NO. 521050104 Page 4 of 13 Pages - ----------------------- ----------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Wynnefield Partners Small Cap Value, L.P. I 13-3953291 - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a) [ ] (b) [X] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 395,750 NUMBER OF --------------------------------------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY OWNED BY 0 EACH --------------------------------------------------------------- REPORTING 9 SOLE DISPOSITIVE POWER PERSON WITH 395,750 --------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 0 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 395,750 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 3.2% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! SCHEDULE 13D - ----------------------- ----------------------- CUSIP NO. 521050104 Page 5 of 13 Pages - ----------------------- ----------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Channel Partnership II, L.P. 22-3215653 - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a) [ ] (b) [X] - -------------------------------------------------------------------------------- 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 New York - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 10,000 NUMBER OF --------------------------------------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY OWNED BY 0 EACH --------------------------------------------------------------- REPORTING 9 SOLE DISPOSITIVE POWER PERSON WITH 10,000 --------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 0 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 10,000 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.1% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! SCHEDULE 13D - ----------------------- ----------------------- CUSIP NO. 521050104 Page 6 of 13 Pages - ----------------------- ----------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Wynnefield Capital Management, LLC 13-4018186 - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a) [ ] (b) [X] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* N/A - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION New York - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 714,250 NUMBER OF --------------------------------------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY OWNED BY 0 EACH --------------------------------------------------------------- REPORTING 9 SOLE DISPOSITIVE POWER PERSON WITH 714,250 --------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 0 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 714,250 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 5.8% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! SCHEDULE 13D - ----------------------- ----------------------- CUSIP NO. 521050104 Page 7 of 13 Pages - ----------------------- ----------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Wynnefield Capital, Inc. 13-3688495 - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a) [ ] (b) [X] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* N/A - -------------------------------------------------------------------------------- 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 186,800 NUMBER OF --------------------------------------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY OWNED BY 0 EACH --------------------------------------------------------------- REPORTING 9 SOLE DISPOSITIVE POWER PERSON WITH 186,800 --------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 0 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 186,800 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 1.5% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! SCHEDULE 13D - ----------------------- ----------------------- CUSIP NO. 521050104 Page 8 of 13 Pages - ----------------------- ----------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Wynnefield Capital, Inc. Profit Sharing & Money Purchase Plan - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a) [ ] (b) [X] - -------------------------------------------------------------------------------- 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 N/A - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 18,100 NUMBER OF --------------------------------------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY OWNED BY 0 EACH --------------------------------------------------------------- REPORTING 9 SOLE DISPOSITIVE POWER PERSON WITH 18,100 --------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 0 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 18,100 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.1% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* EP - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! SCHEDULE 13D - ----------------------- ----------------------- CUSIP NO. 521050104 Page 9 of 13 Pages - ----------------------- ----------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Nelson Obus - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a) [ ] (b) [X] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* N/A - -------------------------------------------------------------------------------- 5 CHECK BOX 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 28,100 NUMBER OF --------------------------------------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY OWNED BY 901,050 EACH --------------------------------------------------------------- REPORTING 9 SOLE DISPOSITIVE POWER PERSON WITH 28,100 --------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 901,050 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 929,150 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 7.5% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! SCHEDULE 13D - ----------------------- ----------------------- CUSIP NO. 521050104 Page 10 of 13 Pages - ----------------------- ----------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Joshua Landes - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a) [ ] (b) [X] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* N/A - -------------------------------------------------------------------------------- 5 CHECK BOX 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 --------------------------------------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY OWNED BY 901,050 EACH --------------------------------------------------------------- REPORTING 9 SOLE DISPOSITIVE POWER PERSON WITH 0 --------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER 901,050 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 901,050 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 7.3% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! SCHEDULE 13D - ----------------------- ----------------------- CUSIP NO. 521050104 Page 11 of 13 Pages - ----------------------- ----------------------- Item 4. Purpose of the Transaction Item 4 is hereby amended to add the following: On December 22, 2003, the Reporting Persons submitted to the Issuer a stockholder proposal (the "Proposal") and a supporting statement (the "Supporting Statement") for inclusion in the Issuer's proxy statement with respect to the Issuer's 2004 Annual Meeting of Stockholders recommending that the Board of Directors of the Issuer take the necessary steps to amend the Issuer's Certificate of Incorporation and to take such other actions as may be necessary in order to cause all directors of the Issuer to be elected annually and not by classes. A copy of the letter dated December 22, 2003 submitting the Proposal and the Supporting Statement is annexed hereto as Exhibit 1. On January 2, 2004, the Reporting Persons sent a letter to the Board of Directors of the Issuer recommending that Nelson Obus be nominated by the Board of Directors for election to the Board at the Issuer's 2004 Annual Meeting of Stockholders. A copy of the letter dated January 2, 2004 is annexed hereto as Exhibit 2. On February 4, 2004, the Reporting Persons sent a letter to Steven F. Crooke, Vice President, General Counsel and Secretary of the Issuer notifying the Issuer that the Reporting Persons intend to nominate Nelson Obus and Joseph C. Stokes, Jr. for election as directors at the Issuer's 2004 Annual Meeting of Stockholders. A copy of the letter dated February 4, 2004 is annexed hereto as Exhibit 3. On February 5, 2004, the Reporting Persons sent a letter to Andrew B. Schmitt, President and CEO of the Issuer, responding to a letter received from Steven F. Crooke, Vice President, General Counsel and Secretary of the Issuer, questioning the Board's appointment of Messrs. Warren Lichtenstein and Anthony B. Helfet to the Board while deferring consideration of the request of the Reporting Persons (as set forth in their letter of January 2, 2004) that Nelson Obus be nominated for election to the Board. A copy of the letter dated February 5, 2004 is annexed hereto as Exhibit 4. Item 7. Material to be Filed as Exhibits Exhibit 1 Letter to the Issuer submitting Proposal and Supporting Statement, dated December 22, 2003 Exhibit 2 Letter to the Board of Directors of the Issuer, dated January 2, 2004 SCHEDULE 13D - ----------------------- ----------------------- CUSIP NO. 521050104 Page 12 of 13 Pages - ----------------------- ----------------------- Exhibit 3 Letter to Steven F. Crooke, Vice President, General Counsel and Secretary of the Issuer, dated February 4, 2004 Exhibit 4 Letter to Andrew B. Schmitt, President and CEO of the Issuer, dated February 5, 2004 SCHEDULE 13D - ----------------------- ----------------------- CUSIP NO. 521050104 Page 13 of 13 Pages - ----------------------- ----------------------- SIGNATURE After reasonable inquiry and to the best of our knowledge and belief, the undersigned certify that the information set forth in this statement is true, complete and correct. Date: February 11, 2004. - -------------------------------------------------------------------------------- Wynnefield Partners Small Cap Value, Wynnefield Partners Small Cap Value, L.P. L.P. I By: Wynnefield Capital Management By: Wynnefield Capital Management LLC, its General Partner LLC, its General Partner By: /s/ Nelson Obus By: /s/ Nelson Obus --------------- --------------- Co-Managing Member Co-Managing Member - -------------------------------------------------------------------------------- Wynnefield Small Cap Value Offshore Wynnefield Capital Management LLC Fund, Ltd. By: Wynnefield Capital, Inc. By: /s/ Nelson Obus --------------- By: /s/ Nelson Obus Co-Managing Member --------------- President - -------------------------------------------------------------------------------- Wynnefield Capital, Inc. By: /s/ Nelson Obus /s/ Nelson Obus --------------- --------------- President Nelson Obus - -------------------------------------------------------------------------------- Channel Partnership II, L.P. /s/ Joshua Landes By: /s/ Nelson Obus - --------------------- --------------- Joshua Landes General Partner - -------------------------------------------------------------------------------- Wynnefield Capital, Inc. Profit Sharing & Money Purchase Plans By: /s/ Nelson Obus ---------------- Authorized Signatory - -------------------------------------------------------------------------------- EX-99.1 3 file002.txt LETTER TO THE ISSUER DATED DECEMBER 22, 2003 Exhibit 1 Wynnefield Partners Small Cap Value L.P. 450 Seventh Avenue New York, New York 10123 December 22, 2003 Layne Christensen Company 1900 Shawnee Mission Parkway Mission Woods, Kansas 66205 Attn: Steven F. Crooke, Vice President, General Counsel and Secretary Re: Submission of Shareholder Proposal for Inclusion in 2004 Proxy Statement -------------------------------------------------------- Dear Mr. Crooke: In accordance with Rule 14a-8 under the Securities Exchange Act of 1934, Wynnefield Partners Small Cap Value L.P. (the "Stockholder") hereby submits a shareholder proposal together with a supporting statement for inclusion in Layne Christensen Company's (the "Corporation") proxy statement for the 2004 annual meeting of stockholders (the "Meeting"). The Stockholder has continuously held at least $2,000 in market value, or 1%, of the Corporation's securities entitled to be voted on the proposal at the Meeting for at least one year prior to the date hereof. The Stockholder intends to continue to hold the required number of securities through the date of the Meeting. Enclosed herewith, are copies of the Schedule 13G filed by the Stockholder and its affiliates on January 25, 2001 with all amendments thereto and the Schedule 13D filed by the Stockholder and its affiliates on August 22, 2003 with all amendments thereto. The Stockholder's proposal and the supporting statement are enclosed herewith. The proposal and the supporting statement combined do not exceed 500 words. The heading appearing at the beginning of the proposal ("Stockholder Proposal to Repeal the Corporation's Staggered Board Structure and Adopt Annual Director Elections") is included in the 500 words and should be included, without change, in the Corporation's proxy statement for the Meeting. Capitalized and bolded words are intended to be so included in the proxy statement for the Meeting. A representative of the Stockholder, who is qualified under state law to present the proposal on the Stockholder's behalf, will attend the Meeting to present the proposal. We call to your intention, that pursuant to Rule 14a-8(f), the Corporation must notify the undersigned within 14 calendar days of receiving this proposal of any procedural or eligibility deficiencies in the proposal. Additionally, pursuant to Rule 14a-8(m), the Corporation must provide the undersigned with a copy of any statements in opposition to the proposal it intends to include in its proxy statement, generally no later than 30 calendar days before it files definitive copies of its proxy statement and any form of proxy under Rule 14a-6. Very truly yours, Wynnefield Partners Small Cap Value L.P. By: /s/ Nelson Obus ---------------------------------- Nelson Obus, Managing Member STOCKHOLDER PROPOSAL TO REPEAL THE CORPORATION'S STAGGERED BOARD STRUCTURE AND ADOPT ANNUAL DIRECTOR ELECTIONS WYNNEFIELD PARTNERS SMALL CAP VALUE L.P. INTENDS TO OFFER THE FOLLOWING PROPOSAL FOR ACTION AT THE MEETING. Proposal RESOLVED, that the stockholders of Layne Christensen Company recommend that the board of directors take the necessary steps to amend the Company's Certificate of Incorporation and take such other actions as may be necessary, in compliance with applicable law and its Certificate of Incorporation, to cause all directors to be elected annually and not by classes as is now provided. Supporting Statement We hope to eliminate the Company's classified board, whereby the directors are divided into three classes, each serving a three-year term. Under the current structure, stockholders can only vote on one-third of the board at any given time. Institutional investors are increasingly calling for the elimination of staggered voting. This position is supported by Institutional Shareholder Services' Proxy Policy Manual, the Council of Institutional Investors' Core Policies, CALPERS' Corporate Governance Guidelines, and numerous other pension funds and institutional investors. CALPERS has been active in submitting shareholder proposals to eliminate staggered boards. The election of directors is a primary means for stockholders to influence corporate affairs and exert accountability on directors and management. Classification enables boards to insulate themselves from the consequences of poor performance and limits their accountability to stockholders. Layne has additionally installed many other measures which serve to insulate and entrench the incumbent board and management, including: no cumulative voting, no stockholder action by written consent, no stockholder right to call a special meeting, the takeover restrictions of the Delaware General Corporation Law, supermajority voting requirements to amend various provisions of the Certificate of Incorporation and a harsh "poison pill" shareholder rights plan. The Board has continued to adopt self-protective measures as recently as December 2003, which serve to insulate the board. WYNNEFIELD IS ASKING THAT THE BOARD BE DE-CLASSIFIED SO THAT STOCKHOLDERS CAN EXPRESS THEIR JUDGMENT ANNUALLY. Wynnefield's goal is to unlock what we view as unrealized stockholder value through the improvement of corporate governance and the implementation of annual director accountability. If the board acts on our proposal, each director would be required to stand for election annually and stockholders will have the opportunity to register their view each year on the performance of the board collectively, and of each director individually. Arguments in support of staggered boards relating to "stability" and "prior experience with a company's business" are tenuous. In Wynnefield's opinion, the purported benefits of staggered boards are less about benefit to stockholders and more about maintaining the status quo. Staggered directorships insulate boards and management from the consequences of poor performance by making directional changes in the Company reflecting the will of its owners, the stockholders, much harder to achieve. WYNNEFIELD PARTNERS URGES YOU TO JOIN US IN VOTING TO "DE-STAGGER" THE TERMS OF DIRECTORS SO THAT STOCKHOLDERS WILL HAVE THE OPPORTUNITY TO HOLD EVERY DIRECTOR ACCOUNTABLE ANNUALLY. WE URGE YOU TO VOTE FOR THIS PROPOSAL. EX-99.2 4 file003.txt LETTER TO THE BOARD OF DIRECTORS EXHIBIT 2 WYNNEFIELD PARTNERS SMALL CAP VALUE, L.P. 450 Seventh Avenue New York, New York 10123 January 2, 2004 The Board of Directors of Layne Christensen Company 1900 Shawnee Mission Parkway Mission Woods, Kansas 66205 Attn: Steven F. Crooke, Vice President, General Counsel and Secretary Re: Nominee Recommendation ---------------------- Gentlemen: Wynnefield Partners Small Cap Value, L.P., Wynnefield Small Cap Value Offshore Fund, Ltd., Wynnefield Partners Small Cap Value L.P. I, Channel Partnership II, L.P., and the Wynnefield Capital, Inc. Profit Sharing & Money Purchase Plan (collectively referred to in this letter as the "Shareholder Group") hereby recommends that Nelson Obus be nominated to stand for election at the Company's 2004 annual meeting of stockholders. The Shareholder Group is the beneficial owner of approximately 7.5% of the outstanding common stock of Layne Christensen Company (the "Company"). The Shareholder Group has continuously beneficially owned more than 5% of the Company's voting common stock for at least one year as of the date of this recommendation, with each of the securities used to calculate such ownership having been held for at least one year as of the date of this recommendation. Enclosed herewith, are copies of the Schedule 13G filed by the Shareholder Group on January 25, 2001 with all amendments thereto and the Schedule 13D filed by the Shareholder Group on August 22, 2003 with all amendments thereto. The Shareholder Group hereby consents to be named in the Company's proxy statement in accordance with Item 7, paragraph (d)(2)(ii)(L) of Schedule 14A under the Securities Exchange Act of 1934. Enclosed herewith is Mr. Obus' consent to serve as a director of the Company if elected and to be identified in the Company's proxy statement. As you are aware, we initially requested that Mr. Obus be appointed to the Company's Board of Directors in August 2003. At that time, there were two vacancies on the Company's Board as a result of the departure of the two KKR Associates directors following KKR's sale of its interest in the Company. To our disappointment, the Company appointed two new directors who had absolutely no financial interest in the Company. One of the concerns we raised at that time was that, following the departure of the KKR directors, significant outside shareholders were no longer represented on the Company's Board. We submit that, as the representative of one of the Company's largest stockholders, Mr. Obus will add significant expertise and value to the Company's Board. Shareholder representation is an issue to which we are highly sensitive. As indicated in Mr. Obus' August 13, 2003 letter to Andrew Schmidt, Mr. Obus is a knowledgeable long-term shareholder with the specific insight, background and focus to make a significant contribution to the Company's Board and help create value for all shareholders. We urge the Board to act in the best interest of the Company's shareholders and nominate Mr. Obus to stand for election at the Company's 2004 annual meeting of stockholders. It is well recognized that institutional investors can add significant value to a company. For example, the Financial Economist Roundtable Statement on Institutional Investors and Corporate Governance "encourages institutional investors to take a proactive role in corporate governance." A 1997 study by the Worldbank indicates that there is a positive and significant correlation between institutional investor ownership and a company's profitability. Kindly distribute this letter to all the members of the Company's Board of Directors, or, in the event the Board of Directors has formed a Nominating Committee, to the members of the Nominating Committee. Very truly yours, Wynnefield Partners Small Cap Value L.P. Wynnefield Small Cap Value Offshore Fund, Ltd. Wynnefield Partners Small Cap Value L.P. I Channel Partnership II, L.P. Wynnefield Capital, Inc. Profit Sharing & Money Purchase Plan By: /s/ Nelson Obus ------------------------------ Nelson Obus, Authorized Representative EX-99.3 5 file004.txt LETTER TO STEVEN F. CROOKE DATED FEBRUARY 4, 2004 EXHIBIT 3 WYNNEFIELD PARTNERS SMALL CAP VALUE, L.P. 450 Seventh Avenue New York, New York 10123 February 4, 2004 VIA FACSIMILE AND FEDERAL EXPRESS - --------------------------------- Layne Christensen Company 1900 Shawnee Mission Parkway Mission Woods, Kansas 66205 Attention: Steven F. Crooke Vice President, General Counsel & Secretary Re: Notice of Intention to Nominate Individuals for Election as Directors at the 2004 Annual Meeting of Stockholders of Layne Christensen Company Dear Mr. Crooke: Pursuant to and in accordance with the requirements of Article II, Section 7 of the Bylaws of Layne Christensen Company (the "Company"), the undersigned (the "Stockholder") hereby furnishes notice of the Stockholder's intention to nominate Nelson Obus and Joseph C. Stokes, Jr. (the "Nominees") for election at the Company's 2004 Annual Meeting of Stockholders (including any adjournments, postponements, reschedulings or continuations thereof), or any other meeting of stockholders held or any actions taken without a meeting in lieu thereof (the "Annual Meeting"). Mr. Obus, 57, has served as president of Wynnefield Capital, Inc. since November 1992 and as a managing member of Wynnefield Capital Management, LLC since January 1997. Wynnefield Capital Management manages two private investment funds and Wynnefield Capital, Inc. manages one private investment fund, all three of which invest in small-cap value U.S. public equities. Mr. Obus is a member of the Board of Directors of Sylvan Inc. (NASDAQ). Mr. Stokes, 56, is a lecturer in corporate finance at the University of Massachusetts. From March 1989 through April 1999, Mr. Stokes served as the Chief Financial Officer of Life Technologies, Inc. (NASDAQ), a developer and manufacturer of products used in life sciences research and the commercial manufacture of genetically engineered products. During 1999 and 2000, Mr. Stokes also served as a member of Life Technologies' Board of Directors. Mr. Stokes also serves as a member of the Dean's Advisory Council of the University of Massachusetts School of Management, the Business Advisory Counsel of the University of Massachusetts School of Management, the Eastern Finance Association and the Multinational Finance Association. Annex I to this letter presents the class and number of shares of the Company's equity securities that are beneficially owned by, and certain additional information regarding, the Stockholder, the Nominees and their affiliates. There are no arrangements or understandings between the Stockholder and the Nominees and any other person or persons pursuant to which any nomination or nominations is to be made by the Stockholder. The business address of the Stockholder, Mr. Obus and their affiliates identified on Annex I hereto is 450 Seventh Avenue, New York, New York 10123. The business address of Mr. Stokes is c/o University of Massachusetts, Isenberg School of Management, 121 Presidents Drive, Amherst, MA 01003. Except as specifically set forth above and on Annex I hereto, there is no other information with respect to the Nominees which would be required to be disclosed pursuant to Regulation 14A under the Exchange Act. Each Nominee has consented in writing to being named in the proxy statement to be used in the solicitation of proxies by the Stockholder and to serve as a director of the Company if elected. Copies of such consents are attached hereto as Annex II. If this notice shall be deemed for any reason by a court of competent jurisdiction to be ineffective with respect to the nomination of any Nominee, or if any Nominee shall be unable to serve for any reason, the Stockholder reserves the right to select a replacement nominee and this notice shall continue to be effective with respect to any replacement nominee selected by the Stockholder. In the event the Company purports to increase the number of directorships pursuant to its Bylaws or otherwise increases the number of directors to be elected at the Annual Meeting, the Stockholder reserves the right to nominate additional persons as directors to fill any vacancies created by the increase or to fill any additional positions on the board which the stockholders shall vote on at the Annual Meeting and this notice shall continue to be effective with respect to the Nominees and any additional nominees selected by the Stockholder. Additional nominations made pursuant to the preceding sentence are without prejudice to the position of the Stockholder that any attempt to increase the number of directorships would constitute an unlawful manipulation of the Company's corporate governance machinery. The address of the Stockholder, as the Stockholder believes it appears on the Company's books, is 450 Seventh Avenue, New York, New York 10123. The Stockholder hereby represents that it is a holder of record of stock of the Company entitled to vote at the Annual Meeting and that it intends to appear in person (through its representative) or by proxy at the Annual Meeting to nominate the Nominees. The Stockholder is the record holder of ten (10) shares of the Company's common stock. The Stockholder and certain affiliates of the Stockholder are the beneficial owners of an additional 929,140 shares of the Company's common stock. Such ownership interest and the relationship between the Stockholder and such affiliates, are set forth on Annex I hereto. The Stockholder reserves the right, consistent with the requirements of applicable law and the Bylaws of the Company, to submit additional proposals or different proposals at the Annual Meeting. The Stockholder, in furnishing the notice described above, does not concede the validity or enforceability of the provisions of the Company's Bylaws that purport to impose advance notice requirements or otherwise limit the right of any stockholder to present business for consideration at any meeting of stockholders, and expressly reserves the right to challenge the validity, application and interpretation of any such provision. Sincerely, Wynnefield Partners Small Cap Value, L.P., By: Wynnefield Capital Management, LLC, its general partner By: /S/ Nelson Obus ---------------------------- Nelson Obus, Managing Member cc: Mr. Andrew B. Schmitt EX-99.4 6 file005.txt LETTER TO ANDREW B. SCHMITT DATED FEBRUARY 5, 2004 EXHIBIT 4 WYNNEFIELD CAPITAL, INC. 450 Seventh Avenue New York, New York 10123 February 5, 2004 Via Federal Express - ------------------- Mr. Andrew B. Schmitt President/CEO Layne Christensen Company 1900 Shawnee Mission Parkway Mission Woods, KS 66205 Dear Andy: I was rather surprised to receive Steven Crooke's letter of January 19, 2004 deferring consideration of my request that I be included in Layne's proxy statement as a nominee for election to Layne's Board of directors. My request dates back to my initial letter to you of August 13, 2003 and was formally renewed in my most recent letter to the Board of January 2, 2004. The timing of Mr. Crooke's letter was ironic. On the same day of Mr. Crooke's letter advising me that the Board could not consider my nomination until March 1, 2004 after a nominating committee is formed, the Company announced that it had appointed Warren Lichenstein to the Board. Interestingly, the Board, acting without a nominating committee, also appointed two other directors following my August 13, 2003 letter and prior to Mr. Crooke's letter of January 19, 2004. We note that in announcing the appointment of Messrs. Helfet and Lichenstein, the Company failed to specify to which Class each new Director has been appointed. While we assume these appointments were made in accordance with the Company's By-laws, we request that you promptly confirm the Class to which each Director was appointed. Should our assumption be incorrect, we naturally reserve the right to challenge the Board's actions. Since the Company has advised us that the Board will not create the nominating committee nor evaluate my candidacy until March 1, 2004, we had no alternative but to timely submit a formal notice of our intent to nominate two directors to the Company's Board for election at the Company's 2004 Annual Meeting of Stockholders in order to preserve our rights, as required by the Company's By-laws. While we would prefer to obtain Board representation amicably, make no mistake that we are committed to the election of our nominees even if the effort and expense of a proxy contest are required. Pending formation of the nominating committee I remain ready and willing to meet with all independent members of the Board, individually or as a group, as soon as practicable at a mutually convenient time, and extend an invitation to all Board members to contact me to discuss this matter further. Kindly forward a copy of this letter to all members of the Board. Very truly yours, Wynnefield Capital, Inc. /s/ Nelson Obus ------------------------ Nelson Obus -----END PRIVACY-ENHANCED MESSAGE-----