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. )(1)
Fox & Hound Restaurant Group
----------------------------
(Name of Issuer)
Common Stock, $.01 Par Value
----------------------------
(Title of Class of Securities)
351321104
---------
(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
--------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
December 12, 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 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 /X/.
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 24 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 351321104 13D Page 2 of 24 Pages
------------------------- -------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
NEWCASTLE PARTNERS, 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
TEXAS
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 836,049
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
836,049
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
836,049
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.3%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------------- -------------------------
CUSIP 351321104 13D Page 3 of 24 Pages
------------------------- -------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
NEWCASTLE CAPITAL MANAGEMENT, L.P.
--------------------------------------------------------------------------------
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
TEXAS
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 836,049
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
836,049
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
836,049
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.3%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------------- -------------------------
CUSIP 351321104 13D Page 4 of 24 Pages
------------------------- -------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
NEWCASTLE CAPITAL GROUP, 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
TEXAS
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 836,049
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
836,049
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
836,049
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.3%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------------- -------------------------
CUSIP 351321104 13D Page 5 of 24 Pages
------------------------- -------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
MARK E. SCHWARZ
--------------------------------------------------------------------------------
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 836,049
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
836,049
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
836,049
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.3%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------------- -------------------------
CUSIP 351321104 13D Page 6 of 24 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*
--------------------------------------------------------------------------------
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 - 0 -
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
- 0 -
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
- 0 -
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------------- -------------------------
CUSIP 351321104 13D Page 7 of 24 Pages
------------------------- -------------------------
================================================================================
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*
--------------------------------------------------------------------------------
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 - 0 -
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
- 0 -
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
- 0 -
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------------- -------------------------
CUSIP 351321104 13D Page 8 of 24 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*
--------------------------------------------------------------------------------
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 - 0 -
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
- 0 -
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
- 0 -
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------------- -------------------------
CUSIP 351321104 13D Page 9 of 24 Pages
------------------------- -------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
F&H ACQUISITION CORP.
--------------------------------------------------------------------------------
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 - 0 -
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH 836,049
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
- 0 -
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
836,049
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
836,049
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.3%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
------------------------- -------------------------
CUSIP 351321104 13D Page 10 of 24 Pages
------------------------- -------------------------
This Statement is jointly filed by Newcastle Partners, L.P., a
Texas limited partnership ("NP"), Newcastle Capital Management, L.P., a Texas
limited partnership ("NCM"), Newcastle Capital Group, L.L.C., a Texas limited
liability company ("NCG"), Mark E. Schwarz, Steel Partners II, L.P., a Delaware
limited partnership ("Steel Partners II"), Steel Partners, L.L.C., a Delaware
limited liability company ("Partners LLC"), Warren G. Lichtenstein and F&H
Acquisition Corp., a Delaware corporation ("F&H Acquisition"), relating to
shares of Common Stock of Fox & Hound Restaurant Group, a Delaware corporation
(the "Issuer").
Item 1. SECURITY AND ISSUER.
Securities acquired: Shares of Common Stock, $0.01 par value (the "Common Stock")
Issuer: Fox & Hound Restaurant Group
1551 North Waterfront Parkway, Suite 310
Wichita, Kansas 67206
Item 2. IDENTITY AND BACKGROUND.
(a) - (c) This Statement is jointly filed by NP, NCM, NCG,
Mark E. Schwarz, Steel Partners II, Partners LLC, Warren G. Lichtenstein and F&H
Acquisition (collectively, the "Reporting Persons"). Because Mark E. Schwarz is
the managing member of NCG, which is the general partner of NCM, which in turn
is the general partner of NP, each of NCM, NCG and Mark E. Schwarz may be
deemed, pursuant to Rule 13d-3 of the Securities Exchange Act of 1934, as
amended (the "Act"), to be the beneficial owners of all shares of Common Stock
held by NP. Partners LLC is the general partner of Steel Partners II. The sole
executive officer and managing member of Partners LLC is Warren G. Lichtenstein,
who is Chairman of the Board, Chief Executive Officer and Secretary. By virtue
of his positions with Partners LLC and Steel Partners II, Mr. Lichtenstein has
the power to vote and dispose of the Issuer's shares of Common Stock owned by
Steel Partners II. Mark E. Schwarz is the sole Director and the President and
Chief Executive Officer of F&H Acquisition. The Reporting Persons are filing
this Statement jointly, as they may be considered a "group" under Section
13(d)(3) of the Act. However, neither the fact of this filing nor anything
contained herein shall be deemed to be an admission by the Reporting Persons
that such a group exists.
The principal occupation of Mark E. Schwarz is serving as the
managing member of NCG. The principal business of NCG is acting as the general
partner of NCM. The principal business of NCM is acting as the general partner
of NP. The principal business of NP is investing in securities.
The principal occupation of Mr. Lichtenstein is investing in
the securities of small cap companies. The principal business of Steel Partners
II is investing in the securities of small cap companies. The principal business
of Partners LLC is acting as the general partner of Steel Partners II.
The principal business of F&H Acquisition is to serve as the
entity by which NP and Steel Partners II commence a cash tender offer to
purchase all of the outstanding Common Stock of the Issuer.
------------------------- -------------------------
CUSIP 351321104 13D Page 11 of 24 Pages
------------------------- -------------------------
The principal business address for each of NP, NCM, NCG and
Mr. Schwarz is 300 Crescent Court, Suite 1110, Dallas, Texas 75201.
The principal business address for each of Steel Partners II,
Partners LLC and Mr. Lichtenstein is 590 Madison Avenue, 32nd Floor, New York,
New York 10022.
The principal business address of F&H Acquisition is c/o
Newcastle Partners, L.P., 300 Crescent Court, Suite 1110, Dallas, Texas 75201.
(d) During the last five years, none of the Reporting Persons
has been convicted in a criminal proceeding (excluding traffic violations or
similar misdemeanors).
(e) During the last five years, none of the Reporting Persons
has been a party to a civil proceeding of a judicial or administrative body of
competent jurisdiction and as a result of such proceeding 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.
(f) NP, NCM and NCG are organized under the laws of the State
of Texas. Steel Partners II, Partners LLC and F&H Acquisition are organized
under the laws of the State of Delaware. Messrs. Schwarz and Lichtenstein are
citizens of the United States of America.
Item 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
As of December 12, 2005, NP had invested approximately
$10,591,755 (inclusive of brokerage commissions) in shares of Common Stock of
the Issuer. The source of these funds was the working capital of NP.
Item 4. PURPOSE OF TRANSACTION.
The Reporting Persons purchased the shares of Common Stock
based on the Reporting Persons' belief that the shares of Common Stock, when
purchased, were undervalued and represented an attractive investment
opportunity. On December 12, 2005, F&H Acquisition, an entity owned by NP and
Steel Partners II, issued a press release announcing that it will commence a
cash tender offer to acquire all of the outstanding shares of Common Stock of
the Issuer that it does not already own for $14.75 per share (the "Tender
Offer"). A copy of the press release is attached hereto as Exhibit 2 and is
incorporated herein by reference. The Tender Offer will be subject to customary
conditions, including (i) a majority of the Issuer's shares on a fully diluted
basis being tendered and not withdrawn, (ii) expiration of the applicable
waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976,
(iii) the obtaining of all consents, approvals or authorizations required by all
state, city or local liquor licensing boards, agencies or other similar entities
and (iv) NP and Steel Partners II being satisfied that Section 203 of the
Delaware General Corporation Law is inapplicable to the Offer to Purchase and
the potential merger thereafter. The Tender Offer will not be subject to or
conditioned upon any financing arrangements. F&H Acquisition expects to commence
the tender offer on or before December 23, 2005.
------------------------- -------------------------
CUSIP 351321104 13D Page 12 of 24 Pages
------------------------- -------------------------
In connection with announcing the Tender Offer, on December
12, 2005, F&H Acquisition sent a letter to the Special Committee of the Issuer's
Board of Directors expressing its willingness to negotiate and enter into a
definitive tender offer/merger agreement prior to commencement of the Tender
Offer. In the letter, F&H Acquisition expressed its belief that its all-cash
offer is superior to the $14.00 proposal made in the LLCP Letter as it will
provide stockholders and optionholders with immediate liquidity at a premium to
market and an immediate opportunity to maximize their investment in the Issuer.
A copy of the letter is attached to the press release attached hereto as Exhibit
2 and is incorporated herein by reference.
No Reporting Person has any present plan or proposal which
would relate to or result in any of the matters set forth in subparagraphs (a) -
(j) of Item 4 of Schedule 13D except as set forth herein or such as would occur
upon completion of any of the actions discussed above. The Reporting Persons
intend to review their investment in the Issuer on a continuing basis. The
Reporting Persons may in the future take such actions with respect to their
investment in the Issuer as they deem appropriate including, without limitation,
seeking Board representation, calling a special meeting of stockholders,
purchasing additional shares of Common Stock, selling some or all of their
shares of Common Stock, engaging in short selling of or any hedging or similar
transaction with respect to the shares of Common Stock or changing their
intention with respect to any and all matters referred to in Item 4.
Item 5. INTEREST IN SECURITIES OF THE ISSUER.
(a) The aggregate percentage of shares of Common Stock
reported to be owned by the Reporting Persons is based upon 10,029,307 shares
outstanding, which is the total number of shares of Common Stock outstanding as
of October 17, 2005, as reported in the Issuer's Form 10-Q filed with the
Securities and Exchange Commission on October 17, 2005.
As of December 12, 2005, NP beneficially owned 836,049 shares
of Common Stock, representing approximately 8.3% of the issued and outstanding
Common Stock of the Issuer.
NCM, as the general partner of NP, may also be deemed to
beneficially own the 836,049 shares of Common Stock beneficially owned by NP.
NCG, as the general partner of NCM, which in turn is the
general partner of NP, may also be deemed to beneficially own the 836,049 shares
of Common Stock beneficially owned by NP.
Mark E. Schwarz, as the managing member of NCG, the general
partner of NCM, which in turn is the general partner of NP, may also be deemed
to beneficially own the 836,049 shares of Common Stock beneficially owned by NP.
Steel Partners II, Partners LLC and Mr. Lichtenstein currently
do not beneficially own any shares of Common Stock of the Issuer.
------------------------- -------------------------
CUSIP 351321104 13D Page 13 of 24 Pages
------------------------- -------------------------
F&H Acquisition may also be deemed to beneficially own the
836,049 shares of Common Stock beneficially owned by NP, as NP has agreed to
contribute such shares of Common Stock, subject to certain conditions, to F&H
Acquisition.
NCM, NCG and Mr. Schwarz disclaim beneficial ownership of the
shares of Common Stock held by NP, except to the extent of their pecuniary
interest therein. Steel Partners II, Partners LLC and Mr. Lichtenstein disclaim
beneficial ownership of the shares of Common Stock held by NP.
(b) By virtue of his position with NP, NCM and NCG, Mark
E. Schwarz has the sole power to vote and dispose of the shares of Common Stock
owned by NP reported in this Statement.
(c) Schedule A annexed hereto lists all transactions in
the Common Stock during the past sixty days by the Reporting Persons. The
transactions in the Common Stock were effected in the open market.
(d) No person other than the Reporting Persons is known
to have the right to receive, or the power to direct the receipt of dividends
from, or proceeds from the sale of, the shares of Common Stock.
(e) Not applicable.
Item 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
RESPECT TO SECURITIES OF THE ISSUER.
NP and Steel Partners II intend to enter into a stockholders
agreement relating to the ownership and management of F&H Acquisition. NP and
Steel Partners II have agreed to share equally any proceeds received upon the
sale of any shares of Common Stock owned by NP in excess of $14 per share.
Other than as described herein, there are no contracts,
arrangements, understandings or relationships among the Reporting Persons, or
between the Reporting Persons and any other person, with respect to the
securities of the Issuer.
Item 7. MATERIAL TO BE FILED AS EXHIBITS.
1. Joint Filing Agreement by and among Newcastle
Partners, L.P., Newcastle Capital Management, L.P.,
Newcastle Capital Group, L.L.C., Mark E. Schwarz,
Steel Partners II, L.P., Steel Partners, L.L.C.,
Warren G. Lichtenstein and F&H Acquisition Corp.,
dated December 12, 2005.
2. Press release issued by F&H Acquisition Corp.,
dated December 12, 2005.
------------------------- -------------------------
CUSIP 351321104 13D Page 14 of 24 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: December 12, 2005 NEWCASTLE PARTNERS, L.P.
By: Newcastle Capital Management, L.P.,
its General Partner
By: Newcastle Capital Group, L.L.C.,
its General Partner
By: /s/ Mark E. Schwarz
----------------------------------
Mark E. Schwarz, Managing Member
NEWCASTLE CAPITAL MANAGEMENT, L.P.
By: Newcastle Capital Group, L.L.C.,
its General Partner
By: /s/ Mark E. Schwarz
----------------------------------
Mark E. Schwarz, Managing Member
NEWCASTLE CAPITAL GROUP, L.L.C.
By: /s/ Mark E. Schwarz
----------------------------------
Mark E. Schwarz, Managing Member
/s/ Mark E. Schwarz
--------------------------------------
MARK E. SCHWARZ
STEEL PARTNERS II, L.P.
By: Steel Partners, L.L.C.
General Partner
By: /s/ Warren G. Lichtenstein
----------------------------------
Warren G. Lichtenstein
Managing Member
------------------------- -------------------------
CUSIP 351321104 13D Page 15 of 24 Pages
------------------------- -------------------------
STEEL PARTNERS, L.L.C.
By: /s/ Warren G. Lichtenstein
----------------------------------
Warren G. Lichtenstein
Managing Member
/s/ Warren G. Lichtenstein
--------------------------------------
WARREN G. LICHTENSTEIN
F&H ACQUISITION CORP.
By: /s/ Mark E. Schwarz
----------------------------------
Name: Mark E. Schwarz
Title: President and Chief Executive Officer
------------------------- -------------------------
CUSIP 351321104 13D Page 16 of 24 Pages
------------------------- -------------------------
SCHEDULE A
TRANSACTIONS IN THE SHARES DURING THE PAST 60 DAYS
Shares of Common Stock Price Per Date of
Purchased Share ($) Purchase
--------- --------- --------
NEWCASTLE PARTNERS, L.P.
------------------------
14,227 12.9958 10/27/05
62,438 13.0364 10/28/05
123,335 13.0836 10/31/05
49,606 13.0985 11/01/05
11,400 13.0985 11/02/05
14,680 13.0975 11/03/05
2,200 13.1045 11/04/05
29,900 13.1003 11/07/05
37,500 13.0658 11/08/05
36,600 13.0530 11/09/05
48,000 12.9981 11/10/05
6,360 12.9939 11/11/05
25,525 13.0019 11/14/05
38,229 13.0014 11/15/05
61,800 12.9996 11/18/05
33,599 13.0122 11/21/05
45,800 13.0601 11/22/05
2,500 13.0460 11/22/05
12,700 13.0405 11/25/05
3,600 13.0500 12/06/05
250 13.1100 12/07/05
62,200 13.3081 12/12/05
NEWCASTLE CAPITAL MANAGEMENT, L.P.
----------------------------------
None
NEWCASTLE CAPITAL GROUP, L.L.C.
-------------------------------
None
------------------------- -------------------------
CUSIP 351321104 13D Page 17 of 24 Pages
------------------------- -------------------------
MARK E. SCHWARZ
---------------
None
STEEL PARTNERS II, L.P.
-----------------------
None
STEEL PARTNERS, L.L.C.
----------------------
None
WARREN G. LICHTENSTEIN
----------------------
None
F&H ACQUISITION CORP.
---------------------
None
------------------------- -------------------------
CUSIP 351321104 13D Page 18 of 24 Pages
------------------------- -------------------------
EXHIBIT INDEX
Exhibit Page
------- ----
1. Joint Filing Agreement by and among Newcastle Partners, 19 to 20
L.P., Newcastle Capital Management, L.P., Newcastle
Capital Group, L.L.C., Mark E. Schwarz, Steel Partners
II, L.P., Steel Partners, L.L.C., Warren G. Lichtenstein
and F&H Acquisition Corp., dated December 12, 2005.
2. Press release issued by F&H Acquisition Corp., dated 21 to 24
December 12, 2005.
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CUSIP 351321104 13D Page 19 of 24 Pages
------------------------- -------------------------
JOINT FILING AGREEMENT
In accordance with Rule 13d-1(k)(1)(iii) under the Securities
Exchange Act of 1934, as amended, the persons named below agree to the joint
filing on behalf of each of them of a Statement on Schedule 13D dated December
12, 2005 (including amendments thereto) with respect to the Common Stock of Fox
& Hound Restaurant Group. This Joint Filing Agreement shall be filed as an
Exhibit to such Statement.
Dated: December 12, 2005 NEWCASTLE PARTNERS, L.P.
By: Newcastle Capital Management, L.P.,
its General Partner
By: Newcastle Capital Group, L.L.C.,
its General Partner
By: /s/ Mark E. Schwarz
----------------------------------
Mark E. Schwarz, Managing Member
NEWCASTLE CAPITAL MANAGEMENT, L.P.
By: Newcastle Capital Group, L.L.C.,
its General Partner
By: /s/ Mark E. Schwarz
----------------------------------
Mark E. Schwarz, Managing Member
NEWCASTLE CAPITAL GROUP, L.L.C.
By: /s/ Mark E. Schwarz
----------------------------------
Mark E. Schwarz, Managing Member
/s/ Mark E. Schwarz
--------------------------------------
MARK E. SCHWARZ
STEEL PARTNERS II, L.P.
By: Steel Partners, L.L.C.
General Partner
------------------------- -------------------------
CUSIP 351321104 13D Page 20 of 24 Pages
------------------------- -------------------------
By: /s/ Warren G. Lichtenstein
----------------------------------
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
F&H ACQUISITION CORP.
By: /s/ Mark E. Schwarz
----------------------------------
Name: Mark E. Schwarz
Title: President and Chief Executive Officer
------------------------- -------------------------
CUSIP 351321104 13D Page 21 of 24 Pages
------------------------- -------------------------
PRESS RELEASE
CONTACT:
--------
Daniel H. Burch
Jeanne M. Carr
MacKenzie Partners, Inc.
(800) 322-2885
FOR IMMEDIATE RELEASE:
----------------------
F&H ACQUISITION CORP. TO LAUNCH CASH TENDER OFFER FOR FOX &
HOUND RESTAURANT GROUP FOR $14.75 PER SHARE
OFFER TOPS PREVIOUS $14.00 PROPOSAL ANNOUNCED BY THE COMPANY
DALLAS, TX - DECEMBER 12, 2005 -- F&H Acquisition Corp., an entity
owned by Newcastle Partners, L.P. ("Newcastle") and Steel Partners II, L.P.
("Steel"), today announced that it will commence a cash tender offer to purchase
all of the outstanding shares of common stock of Fox & Hound Restaurant Group
(Nasdaq:FOXX) not already owned by it for $14.75 per share.
The tender offer will be subject to customary conditions, including (i)
a majority of Fox & Hound's shares on a fully diluted basis being tendered and
not withdrawn, (ii) expiration of the applicable waiting period under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, (iii) the obtaining of all
consents, approvals or authorizations required by all state, city or local
liquor licensing boards, agencies or other similar entities and (iv) Newcastle
and Steel being satisfied that Section 203 of the Delaware General Corporation
Law is inapplicable to the Offer to Purchase and the potential merger
thereafter. The offer will not be subject to or conditioned upon any financing
arrangements. Newcastle and Steel expect to commence the tender offer on or
before December 23, 2005.
In connection with announcing the tender offer, F&H Acquisition Corp.
has sent a letter to Fox & Hound expressing its willingness to offer to acquire
Fox & Hound, through an appropriate acquisition entity by merger, subject to
customary conditions, for $14.75 per share in cash. The letter is attached and
included as part of this press release.
"We believe our all cash offer is clearly superior to the $14.00
proposal made in the LLCP Letter, as it will provide stockholders with immediate
liquidity at a premium to market and an immediate opportunity to maximize their
investment in Fox & Hound," said Mark E. Schwarz, President and CEO of F&H
Acquisition Corp. "We hope that Fox & Hound management will support our offer."
THIS PRESS RELEASE IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT AN OFFER TO BUY
OR THE SOLICITATION OF AN OFFER TO SELL ANY SHARES. THE SOLICITATION AND THE
OFFER TO BUY FOX & HOUND'S COMMON STOCK WILL ONLY BE MADE PURSUANT TO AN OFFER
TO PURCHASE AND RELATED MATERIALS THAT F&H ACQUISITION CORP. INTENDS TO FILE ON
OR BEFORE DECEMBER 23, 2005. STOCKHOLDERS SHOULD READ THESE MATERIALS CAREFULLY
------------------------- -------------------------
CUSIP 351321104 13D Page 22 of 24 Pages
------------------------- -------------------------
BECAUSE THEY CONTAIN IMPORTANT INFORMATION, INCLUDING THE TERMS AND CONDITIONS
OF THE OFFER. STOCKHOLDERS WILL BE ABLE TO OBTAIN THE OFFER TO PURCHASE AND
RELATED MATERIALS WITH RESPECT TO THE TENDER OFFER FREE AT THE SEC'S WEBSITE AT
WWW.SEC.GOV OR FROM F&H ACQUISITION CORP.
Any forward-looking statements contained in this release are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are inherently subject to a
variety of risks and uncertainties that could cause actual results to differ
materially from those projected. These risks and uncertainties include, among
others: the willingness of Fox & Hound stockholders to tender their shares in
the tender offer and the number and timing of shares tendered; the receipt of
third party consents to the extent required for the acquisition; and
satisfaction of the various closing conditions. Other important factors that
could cause actual results to differ materially are included but are not limited
to those listed in Fox & Hound's periodic reports and registration statements
filed with the Securities and Exchange Commission. F&H Acquisition Corp.
undertakes no obligation to update information contained in this release.
LETTER TO SPECIAL COMMITTEE
---------------------------
December 12, 2005
VIA FACSIMILE AND FEDERAL EXPRESS
Special Committee of the Board of Directors
Fox & Hound Restaurant Group
1551 North Waterfront Parkway
Suite 310
Wichita, Kansas 67206
Gentlemen:
Newcastle Partners, L.P. ("Newcastle"), which is the beneficial owner
of 836,049 shares of common stock of Fox & Hound Restaurant Group ("Fox &
Hound"), constituting in excess of 8.3% of its currently issued and outstanding
common stock, and Steel Partners II, L.P. ("Steel") believe that the letter of
intent, dated October 4, 2005, executed by Fox & Hound with Levine Leichtman
Capital Partners (the "LLCP Letter") for the acquisition of Fox & Hound's
outstanding common stock, was not and is not in the best interests of Fox &
Hound's stockholders. Accordingly, F&H Acquisition Corp., a Delaware corporation
jointly owned by Newcastle and Steel, has announced its intention to commence a
tender offer, subject to certain conditions, to acquire all of the outstanding
shares of Fox & Hound at a price of $14.75 per share in cash. F&H Acquisition
Corp. believes that it would be in the best interest of Fox & Hound stockholders
to enter into a negotiated and definitive tender offer/merger agreement as soon
as possible. F&H Acquisition Corp. would also cash-out outstanding in-the-money
------------------------- -------------------------
CUSIP 351321104 13D Page 23 of 24 Pages
------------------------- -------------------------
options and warrants at this price. F&H Acquisition Corp. believes our offer
could result in the payment of the breakup fee of approximately $.50 per share
contained in the LLCP Letter.
F&H Acquisition Corp. proposes that this transaction be accomplished
through a definitive tender offer/merger agreement on the same terms as our
tender offer. Please note that our offer would not be subject to financing.
Newcastle and Steel would provide F&H Acquisition Corp. with the funds from
their cash on hand to purchase Fox & Hound's equity. We believe this all-cash
offer is clearly superior to the $14.00 proposal made in the LLCP Letter as it
will provide stockholders and optionholders with immediate liquidity at a
premium to market and an immediate opportunity to maximize their investment in
Fox & Hound.
F&H Acquisition Corp. desires to retain existing Fox & Hound personnel
including senior management. F&H Acquisition Corp. is prepared to negotiate
appropriate employment agreements as part of the negotiation of a definitive
tender offer/merger agreement.
Our proposal, however, would be conditioned upon obtaining agreed upon
consents and approvals, including approval of the Board of Directors, waiver of
any other anti-takeover provisions, any approvals required under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, consents, approvals or
authorizations required by all state, city or local liquor licensing boards,
agencies or other similar entities, termination of the LLCP Letter and certain
other customary conditions, including no material adverse change in Fox &
Hound's business from what has been publicly disclosed. Please note that F&H
Acquisition Corp. will commence a tender offer by no later than December 23,
2005 if the parties cannot negotiate a definitive tender offer/merger agreement.
We stand ready to meet with the Board of Directors and its
representatives as soon as possible. Please contact the undersigned, Mark
Schwarz, at (214) 661-7474 or our counsel Steve Wolosky, Esq. of Olshan Grundman
Frome Rosenzweig & Wolosky LLP at (212) 451-2333 to discuss any questions the
Board might have.
Very truly yours,
F&H ACQUISITION CORP.
By: /s/ Mark E. Schwarz
----------------------------------
Name: Mark E. Schwarz
Title: President and Chief Executive
Officer
NEWCASTLE PARTNERS, L.P.
By: Newcastle Capital Management, L.P.
its General Partner
By: Newcastle Capital Group, L.L.C.
its General Partner
------------------------- -------------------------
CUSIP 351321104 13D Page 24 of 24 Pages
------------------------- -------------------------
By: /s/ Mark E. Schwarz
----------------------------------
Name: Mark E. Schwarz
Title: Managing Member
STEEL PARTNERS II, L.P.
By: Steel Partners, L.L.C.
General Partner
By: /s/ Warren G. Lichtenstein
----------------------------------
Name: Warren G. Lichtenstein
Title: Managing Member
cc: Fox & Hound Board of Directors