sec document
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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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. 4)1
NOVOSTE CORPORATION
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(Name of Issuer)
COMMON STOCK, $0.01 PAR VALUE
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(Title of Class of Securities)
67010C100
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(CUSIP Number)
STEVEN WOLOSKY, ESQ.
OLSHAN GRUNDMAN FROME ROSENZWEIG & WOLOSKY LLP
Park Avenue Tower
65 East 55th Street
New York, New York 10022
(212) 451-2300
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
April 4, 2005
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(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)
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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).
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CUSIP No. 67010C100 13D Page 2 of 8 Pages
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================================================================================
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 2,433,207
OWNED BY
EACH
REPORTING
PERSON WITH
----------------------------------------------------------------
8 SHARED VOTING POWER
- 0 -
----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
2,433,207
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,433,207
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
14.9%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
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CUSIP No. 67010C100 13D Page 3 of 8 Pages
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================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
STEEL PARTNERS, L.L.C.
--------------------------------------------------------------------------------
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
DELAWARE
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 2,433,207
OWNED BY
EACH
REPORTING
PERSON WITH
----------------------------------------------------------------
8 SHARED VOTING POWER
- 0 -
----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
2,433,207
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,433,207
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
14.9%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
=============== ================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
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CUSIP No. 67010C100 13D Page 4 of 8 Pages
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================================================================================
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 2,433,207
OWNED BY
EACH
REPORTING
PERSON WITH
----------------------------------------------------------------
8 SHARED VOTING POWER
- 0 -
----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
2,433,207
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
2,433,207
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
14.9%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
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CUSIP No. 67010C100 13D Page 5 of 8 Pages
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The following constitutes Amendment No. 4 ("Amendment No. 4") to the
Schedule 13D filed by the undersigned. This Amendment No. 4 amends the Schedule
13D as specifically set forth.
Item 4 is hereby amended to add the following:
On April 4, 2005, Steel Partners II delivered a letter to the Issuer
expressing its disapproval of the Issuer's proposed plan to liquidate its
vascular brachytherapy products business, its only remaining line of business.
Steel Partners II states in the letter that in the event a liquidation proposal
is put to a vote of shareholders, Steel Partners II will vote all its Shares
against such proposal. Steel Partners II strongly opposes any plan of
liquidation and believes the Issuer should retain its cash and net operating
loss carryforwards and continue as a going concern. Steel Partners II also
states in the letter that it believes the Issuer should appoint a new and
smaller Board (to be selected with significant input from the shareholders) who
would seek to redeploy the Issuer's capital. The letter is filed as Exhibit No.
3 to this Amendment No. 4 and is incorporated herein by reference.
Depending on various factors including, without limitation, the
Issuer's financial position and investment strategy, the price levels of the
Shares, conditions in the securities markets and general economic and industry
conditions, Steel Partners II may in the future take such actions with respect
to its investment in the Issuer as it deems appropriate including, without
limitation, seeking Board representation, making proposals to the Issuer
concerning changes to the capitalization, ownership structure or operations of
the Issuer, purchasing additional Shares, selling some or all of its Shares,
engaging in short selling of or any hedging or similar transaction with respect
to the Shares or changing its intention with respect to any and all matters
referred to in Item 4.
Item 7 is hereby amended to add the following exhibit:
3. Letter from Steel Partners II, L.P. to Novoste Corporation,
dated April 4, 2005.
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CUSIP No. 67010C100 13D Page 6 of 8 Pages
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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: April 14, 2005 STEEL PARTNERS II, L.P.
By: Steel Partners, L.L.C.
General Partner
By: /s/ Warren G. Lichtenstein
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Warren G. Lichtenstein
Managing Member
STEEL PARTNERS, L.L.C.
By: /s/ Warren G. Lichtenstein
-------------------------------------
Warren G. Lichtenstein
Managing Member
/s/ Warren G. Lichtenstein
----------------------------------------
WARREN G. LICHTENSTEIN
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CUSIP No. 67010C100 13D Page 7 of 8 Pages
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EXHIBIT INDEX
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Exhibit Page
------- ----
1. Joint Filing Agreement by and among Steel Partners II, L.P., --
Steel Partners, L.L.C. and Warren G. Lichtenstein, dated
September 26, 2003 (previously filed).
2. Confidentiality and Standstill Agreement by and between Novoste --
Corporation and Steel Partners II, L.P., dated November 10, 2004
(previously filed).
3. Letter from Steel Partners II, L.P. to Novoste Corporation, dated 8
April 4, 2005.
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CUSIP No. 67010C100 13D Page 8 of 8 Pages
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STEEL PARTNERS, LTD.
590 MADISON AVENUE
32ND FLOOR
NEW YORK, NEW YORK 10022
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TEL (212) 758-3232
FAX (212) 758-5789
April 4, 2005
To the Board of Directors
Novoste Corporation
4350-C International Blvd.
Norcross, GA 30093
Gentlemen:
Based on public filings and conversations with you, we understand that Novoste
Corporation ("Novoste") is moving forward with a plan to liquidate Novoste's
vascular brachytherapy products business, its only remaining line of business.
In the event a liquidation proposal is put to a vote of the shareholders, Steel
Partners II, L.P. will vote its 2,433,207 shares of common stock of Novoste
(representing 14.9% of the outstanding common stock) against such proposal. We
strongly oppose any plan of liquidation. In our experience, this structure is an
inefficient way to return funds to shareholders. Professional trustees generally
do a poor job of protecting shareholders' interests and maximizing value.
We believe that it would be in Novoste's best interest to liquidate its
operating assets, retain its cash and net operating loss carryforwards and
continue as a going concern. The company should then appoint a new and smaller
Board (to be selected with significant input from the shareholders) who would
seek to redeploy the company's capital. Steel Partners would be willing to
recommend two qualified individuals to serve as directors of the new Board.
We do not believe the existing Board should enter into any merger agreement or
binding obligations that would utilize Novoste's existing assets without first
publicly announcing such proposal and give shareholders the opportunity to voice
their concerns. Under no circumstances should any merger agreement contain a
break-up fee provision. We also believe Novoste should issue a press release
before the Board approves any proposal to liquidate the company in order to also
give shareholders the opportunity to voice any concerns. This would prevent the
unnecessary expense of preparing a full proxy statement to approve the plan of
liquidation or merger when it is clear the shareholders will vote against it.
I look forward to hearing from you.
Sincerely,
/s/ Warren G. Lichtenstein
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Warren G. Lichtenstein