-----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, BNk9KaIhwYRaQW4NXPHdh32RfTlOHUJ42pgXw3FOSRTbgPPRkRYuYsenqoM83NZP eG6l7Z6WxNW4QIGtGpueeQ== 0000921895-02-000320.txt : 20020617 0000921895-02-000320.hdr.sgml : 20020617 20020617114328 ACCESSION NUMBER: 0000921895-02-000320 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20020617 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: STEEL PARTNERS II L P CENTRAL INDEX KEY: 0000915653 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 150 EAST 52ND STREET STREET 2: 21ST FLOOR CITY: NEW YORK STATE: NY ZIP: 10022 BUSINESS PHONE: 212-813-1500 MAIL ADDRESS: STREET 1: 150 EAST 52ND STREET, 21ST FLOOR CITY: NY STATE: NY ZIP: 10022 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: LIQUID AUDIO INC CENTRAL INDEX KEY: 0001016613 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 770421089 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-57595 FILM NUMBER: 02680301 BUSINESS ADDRESS: STREET 1: 800 CHESAPEAKE DRIVE CITY: REDWOOD CITY STATE: CA ZIP: 94063 BUSINESS PHONE: 6505492000 MAIL ADDRESS: STREET 1: LIQUID AUDIO INC STREET 2: 800 CHESAPEAKE DRIVE CITY: REDWOOD CITY STATE: CA ZIP: 94063 SC 13D/A 1 sc13da801874064_06172002.htm sec document

                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549
                                 --------------

                                  SCHEDULE 13D
                                 (Rule 13d-101)

             INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
            TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO
                                  RULE 13d-2(a)

                               (Amendment No. 8)1

                               LIQUID AUDIO, INC.
- --------------------------------------------------------------------------------
                                (Name of Issuer)

                         COMMON STOCK, $0.001 PAR VALUE
- --------------------------------------------------------------------------------
                         (Title of Class of Securities)

                                   53631T 10 2
- --------------------------------------------------------------------------------
                                 (CUSIP Number)

                              STEVEN WOLOSKY, ESQ.
               OLSHAN GRUNDMAN FROME ROSENZWEIG & WOLOSKY LLP
                                 505 Park Avenue
                            New York, New York 10022
                                 (212) 753-7200
- --------------------------------------------------------------------------------
                  (Name, Address and Telephone Number of Person
                Authorized to Receive Notices and Communications)

                                  June 14, 2002
- --------------------------------------------------------------------------------
             (Date of Event Which Requires Filing of This Statement)

            If the filing  person has  previously  filed a statement on Schedule
13G to report the  acquisition  that is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(e),  13d-1(f) or 13d-1(g),  check the
following box |_|.

            Note.  Schedules  filed  in  paper  format  shall  include  a signed
original and five copies of the schedule, including all exhibits. See Rule 13d-7
for other parties to whom copies are to be sent.


                         (Continued on following pages)

                               (Page 1 of 8 Pages)

- --------
     1      The remainder of this cover page shall be filled out for a reporting
person's  initial  filing on this  form with  respect  to the  subject  class of
securities,  and for any subsequent amendment containing information which would
alter disclosures provided in a prior cover page.

            The  information  required on the remainder of this cover page shall
not be deemed to be "filed"  for the  purpose  of  Section 18 of the  Securities
Exchange Act of 1934 or otherwise  subject to the liabilities of that section of
the Act but shall be subject to all other  provisions of the Act  (however,  see
the Notes).





- ---------------------------                          ---------------------------
CUSIP No. 53631T 10 2                13D               Page 2 of 8 Pages
- ---------------------------                          ---------------------------

================================================================================
     1         NAME OF REPORTING PERSONS
               I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

                                 STEEL PARTNERS II, L.P.
- --------------------------------------------------------------------------------
     2         CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*         (a) |_|
                                                                         (b) |_|
- --------------------------------------------------------------------------------
     3         SEC USE ONLY

- --------------------------------------------------------------------------------
     4         SOURCE OF FUNDS*
                     WC
- --------------------------------------------------------------------------------
     5         CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
               PURSUANT TO ITEM 2(d) OR 2(e)                                 |_|
- --------------------------------------------------------------------------------
     6         CITIZENSHIP OR PLACE OF ORGANIZATION

                     DELAWARE
- --------------------------------------------------------------------------------
 NUMBER OF         7      SOLE VOTING POWER
   SHARES
BENEFICIALLY                    2,062,866
  OWNED BY
    EACH
 REPORTING
PERSON WITH
               -----------------------------------------------------------------
                   8      SHARED VOTING POWER

                                -0-
               -----------------------------------------------------------------
                   9      SOLE DISPOSITIVE POWER

                                2,062,866
               -----------------------------------------------------------------
                  10      SHARED DISPOSITIVE POWER

                                -0-
- --------------------------------------------------------------------------------
     11        AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
               PERSON

                     2,062,866
- --------------------------------------------------------------------------------
     12        CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
               CERTAIN SHARES*                                               |_|
- --------------------------------------------------------------------------------
     13        PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

                     9.1%
- --------------------------------------------------------------------------------
     14        TYPE OF REPORTING PERSON*

                     PN
================================================================================

                      *SEE INSTRUCTIONS BEFORE FILLING OUT!





- ---------------------------                          ---------------------------
CUSIP No. 53631T 10 2                13D               Page 3 of 8 Pages
- ---------------------------                          ---------------------------

================================================================================
     1         NAME OF REPORTING PERSONS
               I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

                                 WARREN G. LICHTENSTEIN
- --------------------------------------------------------------------------------
     2         CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*         (a) |_|
                                                                         (b) |_|
- --------------------------------------------------------------------------------
     3         SEC USE ONLY

- --------------------------------------------------------------------------------
     4         SOURCE OF FUNDS*
                     OO
- --------------------------------------------------------------------------------
     5         CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
               PURSUANT TO ITEM 2(d) OR 2(e)                                 |_|
- --------------------------------------------------------------------------------
     6         CITIZENSHIP OR PLACE OF ORGANIZATION

                     USA
- --------------------------------------------------------------------------------
 NUMBER OF         7      SOLE VOTING POWER
   SHARES
BENEFICIALLY                    2,062,866
  OWNED BY
    EACH
 REPORTING
PERSON WITH
               -----------------------------------------------------------------
                   8      SHARED VOTING POWER

                                -0-
               -----------------------------------------------------------------
                   9      SOLE DISPOSITIVE POWER

                                2,062,866
               -----------------------------------------------------------------
                  10      SHARED DISPOSITIVE POWER

                                -0-
- --------------------------------------------------------------------------------
     11        AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
               PERSON

                     2,062,866
- --------------------------------------------------------------------------------
     12        CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
               CERTAIN SHARES*                                               |_|
- --------------------------------------------------------------------------------
     13        PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

                     9.1%
- --------------------------------------------------------------------------------
     14        TYPE OF REPORTING PERSON*

                     IN
================================================================================

                      *SEE INSTRUCTIONS BEFORE FILLING OUT!





- ---------------------------                          ---------------------------
CUSIP No. 53631T 10 2                13D               Page 4 of 8 Pages
- ---------------------------                          ---------------------------


            The following constitutes Amendment No. 8 ("Amendment No. 8") to the
Schedule 13D filed by the undersigned.  This Amendment No. 8 amends the Schedule
13D as specifically set forth.

  Item 3 is hereby amended and restated as follows:

Item 3.          Source and Amount of Funds or Other Consideration.
                 -------------------------------------------------

                 The aggregate  purchase price of the 2,062,866 Shares of Common
Stock owned by Steel Partners II is $4,832,856. The Shares of Common Stock owned
by Steel Partners II were acquired with partnership funds.

   Item 4 is hereby amended to add the following:

                 On June 14, 2002,  Steel  Partners II delivered a letter to the
Board of  Directors  of the Issuer  expressing  its  opposition  to the Issuer's
decision to enter into a definitive merger agreement with Alliance Entertainment
Corp.  and  offering to acquire all of the  Issuer's  shares of common stock for
$2.75 per share in cash.  Steel Partners II believes that its proposed  all-cash
offer is superior to the proposed  merger and  represents the best means for the
Issuer's shareholders to maximize the value of their shares in the short term. A
copy  of the  letter  is  filed  as an  exhibit  to  this  Amendment  No.  8 and
incorporated herein by reference.

   The second paragraph of Item 5(a) is hereby amended and restated as follows:

                 As of the close of business on June 13, 2002, Steel Partners II
beneficially owned 2,062,866 Shares of Common Stock, constituting  approximately
9.1% of the Shares outstanding.  Mr.  Lichtenstein  beneficially owned 2,062,866
Shares,   constituting  approximately  9.1%  of  the  Shares  outstanding.   Mr.
Lichtenstein has sole voting and dispositive power with respect to the 2,062,866
Shares owned by Steel Partners II by virtue of his authority to vote and dispose
of such Shares. All of such Shares were acquired in open-market transactions.

   Item 5(c) is hereby amended to add the following:

                 (c)  Schedule A annexed  hereto lists all  transactions  in the
Issuer's Common Stock by the Reporting Persons since the filing of Amendment No.
7 to the Schedule 13D.

   Item 7 is hereby amended to add the following exhibit:

                 9.   Letter  from  Steel  Partners  II,  L.P.  to the  Board of
                      Directors of Liquid Audio, Inc., dated June 14, 2002.






- ---------------------------                          ---------------------------
CUSIP No. 53631T 10 2                13D               Page 5 of 8 Pages
- ---------------------------                          ---------------------------


                                   SIGNATURES
                                   ----------


            After  reasonable  inquiry  and to the  best  of his  knowledge  and
belief, each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.


Dated: June 14, 2002                      STEEL PARTNERS II, L.P.

                                          By: Steel Partners, L.L.C.
                                              General Partner


                                          By: /s/ Warren G. Lichtenstein
                                              ---------------------------
                                              Warren G. Lichtenstein
                                              Chief Executive Officer


                                          /s/ Warren G. Lichtenstein
                                          --------------------------
                                          WARREN G. LICHTENSTEIN






- ---------------------------                          ---------------------------
CUSIP No. 53631T 10 2                13D               Page 6 of 8 Pages
- ---------------------------                          ---------------------------


                                   SCHEDULE A

                        Transactions in the Shares Since
                        --------------------------------
                       Amendment No. 7 to the Schedule 13D
                       -----------------------------------

 Shares of Common Stock             Price Per                       Date of
       Purchased                    Share($)                       Purchase
      -----------                   ---------                     ----------

                             STEEL PARTNERS II, L.P.
                             -----------------------

          8,100                      2.5200                        5/29/02


                               WARREN LICHTENSTEIN
                               -------------------
                                     None









- ---------------------------                          ---------------------------
CUSIP No. 53631T 10 2                13D               Page 7 of 8 Pages
- ---------------------------                          ---------------------------

                                  EXHIBIT INDEX



Exhibit                                                                  Page
- -------                                                                  ----
1.          Joint Filing Agreement, dated July 26,
            2001 (previously filed).

2.          Letter from Steel Partners II, L.P. to
            the Board of Directors of Liquid
            Audio, Inc., dated September 10, 2001
            (previously filed).

3.          Letter from Steel Partners II, L.P. to
            certain officers and directors of
            Liquid Audio, Inc., dated October 3,
            2001 (previously filed).

4.          Letter from Steel Partners II, L.P. to
            the Board of Directors of Liquid
            Audio, Inc., dated October 22, 2001
            (previously filed).

5.          Letter from Steel Partners II, L.P. to
            the Board of Directors of Liquid
            Audio, Inc., dated October 25, 2001
            (previously filed).

6.          Letter from Steel Partners II, L.P. to
            the Board of Directors of Liquid
            Audio, Inc., dated November 26, 2001
            (previously filed).

7.          Letter from Steel Partners II, L.P. to
            the Board of Directors of Liquid
            Audio, Inc., dated April 16, 2002
            (previously filed).

8.          Letter from Steel Partners II, L.P. to
            the Board of Directors of Liquid
            Audio, Inc., dated May 29, 2002
            (previously filed).

9.          Letter from Steel Partners II, L.P. to
            the Board of Directors of Liquid                              8
            Audio, Inc., dated June 14, 2002.





- ---------------------------                          ---------------------------
CUSIP No. 53631T 10 2                13D               Page 8 of 8 Pages
- ---------------------------                          ---------------------------


                                 STEEL PARTNERS
                              150 SOUTH RODEO DRIVE
                                    SUITE 100
                         BEVERLY HILLS, CALIFORNIA 90212
                                    --------
                               TEL (310) 246-3741
                               FAX (310) 777-3041

June 14, 2002


The Board of Directors
Liquid Audio, Inc.
800 Chesapeake Drive
Redwood City, California 94063

Ladies and Gentlemen:

Steel Partners II, L.P. ("Steel  Partners"),  the largest  shareholder of Liquid
Audio, Inc. (the "Company"),  is shocked by the Company's decision to merge with
Alliance Entertainment Corp. ("Alliance"). Clearly we are not the only group who
feels this way given the  reaction by your second  largest  shareholder  and the
substantial  decrease in the Company's stock price  following the  announcement.
Also, from the limited public information provided, it appears this proposal may
not have been unanimously supported by the Board of Directors.

We fully intend to vote against this proposal  since the value is well below the
liquidation  value of the Company.  Because the Board of Directors has failed to
find a buyer who will make an  all-cash  bid for the shares and the  Company has
wasted an enormous  amount of cash and time in the  process of  entering  into a
proposed transaction which will only continue to dissipate shareholder value, we
hereby offer to acquire all of the Company's  shares for $2.75 per share in cash
through a tender offer.  We believe our due diligence  would take no longer than
ten days. Please note our offer is not subject to any financing contingency.

We strongly believe this offer represents a "superior  proposal" to the proposed
Alliance  merger.  Additionally,  our proposal  offers  shareholders a risk free
alternative for realizing maximum shareholder value.

Finally, we ask that you do not further delay the annual meeting of shareholders
and hold the meeting as scheduled on July 1, 2002 so that all  shareholders  can
decide whether they would like you to further pursue this merger or would rather
have responsible owners control the Company.


Very truly yours,


/s/ Josh Schechter
- ------------------
Josh Schechter

-----END PRIVACY-ENHANCED MESSAGE-----