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----------------------------
SCHEDULE 13D
(AMENDMENT NO. )
Under the Securities Exchange Act of 1934
Hexcel Corporation
--------------------------------------------------------------------------------
(Name of Company)
Common Stock
--------------------------------------------------------------------------------
(Title of Class of Securities)
--------------------------------------------------------------------------------
(Ordinary Shares) CUSIP 428291108
(CUSIP Number of Class of Securities)
Oscar S. Schafer
--------------------------------------------------------------------------------
O.S.S. Capital Management
LP 598 Madison Avenue
New York, NY 10022
(212) 756-8700
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
April 26, 2007
--------------------------------------------------------------------------------
(Date of Event which Requires
Filing of this Schedule)
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 ss.ss.240.13d-1(e), 240.13d-1(f) or 240.13d-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 ss.240.13d-7 for other
parties to whom copies are to be sent.
* 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 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
SCHEDULE 13D
--------------------------------------- -------------------------------
CUSIP NO. 428291108 PAGE 2 OF 17 PAGES
--------------------------------------- -------------------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
O.S.S. Capital Management LP
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING
IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF ----------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 4,810,900
EACH ----------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
0
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,810,900
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
4,810,900
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) (see Item 5)
5.1% (see Item 5)
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
SCHEDULE 13D
--------------------------------------- -------------------------------
CUSIP NO. 428291108 PAGE 3 OF 17 PAGES
--------------------------------------- -------------------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Oscar S. Schafer & Partners I LP
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF ----------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 192,671
EACH ----------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
0
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
192,671
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
192,671
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN
ROW (11) EXCLUDES CERTAIN SHARES* [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.2% (see Item 5)
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
SCHEDULE 13D
--------------------------------------- -------------------------------
CUSIP NO. 428291108 PAGE 4 OF 17 PAGES
--------------------------------------- -------------------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Oscar S. Schafer & Partners II LP
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF ----------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 2,051,694
EACH ----------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
0
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,051,694
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
2,051,694
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN
ROW (11) EXCLUDES CERTAIN SHARES* ` [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.2% (see Item 5)
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
SCHEDULE 13D
--------------------------------------- -------------------------------
CUSIP NO. 428291108 PAGE 5 OF 17 PAGES
--------------------------------------- -------------------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
O.S.S. Overseas Fund Ltd.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF ----------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 2,493,172
EACH ----------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
0
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,493,172
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
2,493,172
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN
ROW (11) EXCLUDES CERTAIN SHARES* [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.7% (see Item 5)
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
--------------------------------------------------------------------------------
SCHEDULE 13D
--------------------------------------- -------------------------------
CUSIP NO. 428291108 PAGE 6 OF 17 PAGES
--------------------------------------- -------------------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
O.S.S. Advisors LLC
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF ----------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 2,244,365
EACH ----------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
0
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,244,365
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
2,244,365
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN
ROW (11) EXCLUDES CERTAIN SHARES* [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.4% (see Item 5)
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
--------------------------------------------------------------------------------
SCHEDULE 13D
--------------------------------------- -------------------------------
CUSIP NO. 428291108 PAGE 7 OF 17 PAGES
--------------------------------------- -------------------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Schafer Brothers LLC
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF ----------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 4,810,900
EACH ----------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
0
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,810,900
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
4,810,900
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN
ROW (11) EXCLUDES CERTAIN SHARES* [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.1% (see Item 5)
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
--------------------------------------------------------------------------------
SCHEDULE 13D
--------------------------------------- -------------------------------
CUSIP NO. 428291108 PAGE 8 OF 17 PAGES
--------------------------------------- -------------------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Oscar S. Schafer
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING 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 4,810,900
EACH ----------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
0
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,810,900
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
4,810,900
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN
ROW (11) EXCLUDES CERTAIN SHARES* [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.1% (see Item 5)
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
--------------------------------------------------------------------------------
SCHEDULE 13D
--------------------------------------- -------------------------------
CUSIP NO. 428291108 PAGE 9 OF 17 PAGES
--------------------------------------- -------------------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Peter J. Grondin
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
800
NUMBER OF ----------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 0
EACH ----------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
800
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
800
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN
ROW (11) EXCLUDES CERTAIN SHARES* [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.0% (see Item 5)
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
--------------------------------------------------------------------------------
SCHEDULE 13D
--------------------------------------- -------------------------------
CUSIP NO. 428291108 PAGE 10 OF 17 PAGES
--------------------------------------- -------------------------------
ITEM 1. SECURITY AND ISSUER
This statement on Schedule 13D relates to the ordinary shares
("Ordinary Shares"), of Hexcel Corporation., a Delaware corporation (the
"Company"). The address of the principal executive offices of the Company is:
Two Stamford Plaza
281 Tresser Blvd., 16th Floor
Stamford CT 06901
ITEM 2. IDENTITY AND BACKGROUND
(a), (b), (c) and (f). This statement on Schedule 13D is filed on behalf of
the following persons (each a "Reporting Person"), in each case with respect to
the Ordinary Shares indicated:
(i) Oscar S. Schafer & Partners I LP, a Delaware limited partnership
("OSS I LP"), with respect to the Ordinary Shares beneficially owned by it.
The sole general partner of OSS I LP is O.S.S. Advisors LLC (see below
at (iii)).
The principal business of OSS I LP is to invest in securities. The
address of its principal office is: 598 Madison Avenue, New York, NY 10022.
(ii) Oscar S. Schafer & Partners II LP, a Delaware limited partnership
("OSS II LP" and together with OSS I LP, the "Partnerships"), with respect to
the Ordinary Shares beneficially owned by it.
The sole general partner of OSS II LP is O.S.S. Advisors LLC (see
below at (iii)).
The principal business of OSS II LP is to invest in securities. The
address of its principal office is: 598 Madison Avenue, New York, NY 10022.
(iii) O.S.S. Advisors LLC, a Delaware limited liability company (the
"General Partner"), which is the general partner of each of the Partnerships,
with respect to the Ordinary Shares beneficially owned by each of the
Partnerships.
SCHEDULE 13D
--------------------------------------- -------------------------------
CUSIP NO. 428291108 PAGE 11 OF 17 PAGES
--------------------------------------- -------------------------------
The members of the General Partner are: Mr. Oscar S. Schafer (see
below at (vii)) and Andrew J. Goffe. Mr. Goffe is a citizen of the United States
of America and his principal occupation is investment management.
The principal business of the General Partner is investment
management. The address of its principal office is: 598 Madison Avenue, New
York, NY 10022.
(iv) O.S.S. Overseas Fund Ltd., a Cayman Islands exempted company ("OSS
Overseas"), with respect to the Ordinary Shares beneficially owned by it.
The directors of OSS Overseas are:
(1) Mr. Oscar S. Schafer (see below at (vii)).
(2) Jane Fleming. Ms. Fleming is an assistant client accountant
at Queensgate Bank & Trust Company Ltd., 5th Floor, Harbour
Place, 103 South Church Street, P.O. Box 30464 SMB, Grand
Cayman, Cayman Islands. Ms. Fleming is a British citizen.
(3) J.D. Hunter. Mr. Hunter is the Managing Director of Queensgate
Bank & Trust Company Ltd., 5th Floor, Harbour Place, 103 South
Church Street, P.O. Box 30464 SMB, Grand Cayman, Cayman
Islands. Mr. Hunter is a British citizen.
The principal business of OSS Overseas is to invest in securities. The
address of its principal office is: SEI Investments Global (Cayman) Limited,
Harbor Place, 5th Floor, South Church Street, PO Box 30464 SMB, Grand Cayman,
Cayman Islands, British West Indies.
(v) O.S.S. Capital Management LP, a Delaware limited partnership, (the
"Investment Manager"), which serves as investment manager and management
company, to OSS Overseas and the Partnerships, respectively, and has investment
discretion with respect to the Ordinary Shares beneficially owned by OSS
Overseas and the Partnerships. The sole general partner of Investment Manager is
Schafer Brothers LLC (see below at (vi)).
The principal business of Investment Manager is investment management.
The address of its principal office is: 598 Madison Avenue, New York, NY 10022.
(vi) Schafer Brothers LLC, a Delaware limited liability company ("SB LLC"),
which is the general partner of the Investment Manager, with respect to the
Ordinary Shares beneficially owned by OSS Overseas and the Partnerships.
SCHEDULE 13D
--------------------------------------- -------------------------------
CUSIP NO. 428291108 PAGE 12 OF 17 PAGES
--------------------------------------- -------------------------------
The sole member of SB LLC is: Mr. Oscar S. Schafer (see below at
(vii)).
The principal business of SB LLC is to serve as the general partner of
the Investment Manager. The address of its principal office is: 598 Madison
Avenue, New York, NY 10022.
(vii) Mr. Oscar S. Schafer ("Mr. Schafer"), who serves as the senior
managing member of the General Partner and SB LLC, with respect to the Ordinary
Shares beneficially owned by OSS Overseas and the Partnerships.
Mr. Schafer is a citizen of the United States of America and his
principal business address is: 598 Madison Avenue, New York, NY 10022.
(viii) Mr. Peter J. Grondin ("Mr. Grondin"), who serves as an equity
analyst for the General Partner and Investment Manager, owns Ordinary Shares for
his personal account.
Mr. Grondin is a citizen of the United States of America and his
principal business address is: 598 Madison Avenue, New York, NY 10022.
(d) None of the Reporting Persons, nor, to the best of their knowledge, any
of their respective directors, executive officers, control persons, general
partners or members has, during the last five years, been convicted in a
criminal proceeding (excluding traffic violations or similar misdemeanors).
(e) None of the Reporting Persons, nor, to the best of their knowledge, any
of their respective directors, executive officers, control persons, general
partners or members has, during the last five years, 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.
SCHEDULE 13D
--------------------------------------- -------------------------------
CUSIP NO. 428291108 PAGE 13 OF 17 PAGES
--------------------------------------- -------------------------------
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
The total amount of funds used by each of the Partnerships and OSS
Overseas to purchase the securities of the Company as described herein was
furnished from the investment capital of the Partnerships and OSS Overseas, as
applicable.
Included in the total securities beneficially owned by the Investment
Manager, SB LLC and Mr. Schafer were 73,363 Ordinary Shares which were held for
the benefit of a third party in a separately managed account (the "Managed
Account") over which the Investment Manager had investment discretion.
Mr. Grondin has investment discretion over 800 Ordinary Shares
purchased for his personal account.
ITEM 4. PURPOSE OF TRANSACTION.
On March 9, 2007, the Investment Manager sent a letter to the Company
expressing its concern regarding the Company's operating performance relative to
its peers and with the management's lack of concern regarding the gap in
performance. The Investment Manager also noted that a member of the Company's
Board of Directors was stepping down and suggested a candidate for his
replacement.
On April 9, 2007, the Company's Chief Executive Officer visited the
Investment Manager's offices. In a letter on April 26, 2007, the Investment
Manager reiterated its concern that the Company was underperforming. The
Investment Manager requested a committee of independent directors be formed and
that the committee retain an independent investment bank to advise as to how
shareholder value could be best maximized.
The Reporting Persons intend to review their investment in the Company
on a continuing basis and may engage in discussions with management, the Board
of Directors, other shareholders of the Company and other relevant parties
concerning the business, operations, board composition, management, strategy and
future plans of the Company. Depending on various factors including, without
limitation, the Company's financial position and strategic direction, the
outcome of the discussions and actions referenced above, actions taken by the
Board of Directors, price levels of the shares, other investment opportunities
available to the Reporting Persons, conditions in the securities market and
general economic and industry conditions, the Reporting Persons may in the
future take such actions with respect to their investment in the Company as they
deem appropriate including, without limitation, purchasing additional shares or
selling some or all of their shares, engaging in short selling of or any hedging
or similar transactions with respect to the shares and/or otherwise changing
their intention with respect to any and all matters referred to in Item 4 of
Schedule 13D.
Copies of the March 9, 2007 and the April 26, 2007 letters are attached
hereto as Exhibit A and Exhibit B and are incorporated by reference.
SCHEDULE 13D
--------------------------------------- -------------------------------
CUSIP NO. 428291108 PAGE 14 OF 17 PAGES
--------------------------------------- -------------------------------
ITEM 5. INTEREST IN SECURITIES OF THE COMPANY.
(a), (b) The following table sets forth the aggregate number and
percentage of the outstanding Ordinary Shares beneficially owned by each of the
Reporting Persons named in Item 2, as of the date hereof. The percentage of the
outstanding Ordinary Shares beneficially owned is based on the 94,195,000
Ordinary Shares (based on calculations made in accordance with Rule 13d-3(d)).
The table also sets forth the number of Ordinary Shares with respect to which
each Reporting Person has the sole power to vote or to direct the vote, shared
power to vote or to direct the vote, sole power to dispose or to direct the
disposition, or shared power to dispose or to direct the disposition, in each
case as of the date hereof.
------------------------- ---------------------- ----------------- -------------------- --------------------
Reporting Person Aggregate Number of Approximate Number of Ordinary Number of Ordinary
Ordinary Shares Percentage Shares: Sole Power Shares: Shared
Beneficially Owned to Vote or to Power to Vote or
Dispose to Dispose
------------------------ --------------------- ---------------- ------------------ --------------------
Investment Manager 4,810,900 5.1% 0 4,810,900
------------------------ --------------------- ---------------- ------------------ --------------------
OSS I 192,671 0.2% 0 192,671
------------------------ --------------------- ---------------- ------------------ --------------------
OSS II 2,051,694 2.2% 0 2,051,694
------------------------ --------------------- ---------------- ------------------ --------------------
OSS Overseas 2,493,172 2.7% 0 2,493,172
------------------------ --------------------- ---------------- ------------------ --------------------
General Partner 2,244,365 2.4% 0 2,244,365
------------------------ --------------------- ---------------- ------------------ --------------------
SB LLC 4,810,900 5.1% 0 4,810,900
------------------------ --------------------- ---------------- ------------------ --------------------
Mr. Schafer 4,810,900 5.1% 0 4,810,900
------------------------ --------------------- ---------------- ------------------ --------------------
Managed Account 73,363 .1% 0 73,363
------------------------ --------------------- ---------------- ------------------ --------------------
Mr. Grondin 800 0% 800 0
------------------------ --------------------- ---------------- ------------------ --------------------
Each of the transactions listed above were effected in the open market.
The Investment Manager, the General Partner, SB LLC, Mr. Schafer and Mr. Grondin
expressly declare that this filing shall not be construed as an admission that
any of them is, for the purposes of sections 13(d) or 13(g) of the Act, the
beneficial owner of any securities covered by this filing.
SCHEDULE 13D
--------------------------------------- -------------------------------
CUSIP NO. 428291108 PAGE 15 OF 17 PAGES
--------------------------------------- -------------------------------
(c) Except for the transactions set forth below, during the last sixty
days the Reporting Persons have effected no transactions with respect to the
Ordinary Shares.
---------------------------------------------------------------------------
Reporting Person Date Buy or Number of Price Per
Sell Ordinary Shares Share
---------------------------------------------------------------------------
OSS I 3/7/2007 Buy 11,609 $18.60
---------------------------------------------------------------------------
OSS I 3/7/2007 Buy 820 $18.49
---------------------------------------------------------------------------
OSS I 3/8/2007 Buy 9,196 $19.17
---------------------------------------------------------------------------
OSS I 3/8/2007 Buy 1,621 $19.04
---------------------------------------------------------------------------
OSS I 3/9/2007 Buy 12,159 $19.40
---------------------------------------------------------------------------
OSS I 3/9/2007 Buy 2,027 $19.38
---------------------------------------------------------------------------
OSS I 3/12/2007 Buy 10,133 $19.64
---------------------------------------------------------------------------
OSS I 3/13/2007 Buy 10,133 $19.23
---------------------------------------------------------------------------
OSS I 3/14/2007 Buy 4,053 $18.73
---------------------------------------------------------------------------
OSS I 3/16/2007 Buy 6,080 $19.21
---------------------------------------------------------------------------
OSS I 3/19/2007 Buy 6,080 $19.32
---------------------------------------------------------------------------
OSS I 3/20/2007 Buy 6,080 $19.92
---------------------------------------------------------------------------
OSS I 4/12/2007 Buy 3,440 $19.95
---------------------------------------------------------------------------
OSS I 4/24/2007 Buy 6,954 $21.50
---------------------------------------------------------------------------
OSS I 4/25/2007 Buy 6,403 $21.91
---------------------------------------------------------------------------
OSS I 4/26/2007 Buy 4,754 $21.58
---------------------------------------------------------------------------
OSS II 3/7/2007 Buy 102,408 $18.60
---------------------------------------------------------------------------
OSS II 3/7/2007 Buy 8,750 $18.49
---------------------------------------------------------------------------
OSS II 3/8/2007 Buy 98,108 $19.17
---------------------------------------------------------------------------
OSS II 3/8/2007 Buy 17,296 $19.04
---------------------------------------------------------------------------
OSS II 3/9/2007 Buy 129,715 $19.40
---------------------------------------------------------------------------
OSS II 3/9/2007 Buy 21,619 $19.38
---------------------------------------------------------------------------
OSS II 3/12/2007 Buy 108,095 $19.64
---------------------------------------------------------------------------
OSS II 3/13/2007 Buy 108,095 $19.23
---------------------------------------------------------------------------
OSS II 3/14/2007 Buy 43,238 $18.73
---------------------------------------------------------------------------
OSS II 3/16/2007 Buy 64,857 $19.21
---------------------------------------------------------------------------
OSS II 3/19/2007 Buy 64,857 $19.32
---------------------------------------------------------------------------
OSS II 3/20/2007 Buy 64,857 $19.92
---------------------------------------------------------------------------
OSS II 4/12/2007 Buy 36,730 $19.95
---------------------------------------------------------------------------
OSS II 4/24/2007 Buy 74,237 $21.50
---------------------------------------------------------------------------
OSS II 4/25/2007 Buy 68,360 $21.91
---------------------------------------------------------------------------
OSS II 4/26/2007 Buy 46,605 $21.58
---------------------------------------------------------------------------
OSS Overseas 3/7/2007 Buy 111,283 $18.60
---------------------------------------------------------------------------
OSS Overseas 3/7/2007 Buy 10,667 $18.49
---------------------------------------------------------------------------
OSS Overseas 3/8/2007 Buy 119,596 $19.17
---------------------------------------------------------------------------
OSS Overseas 3/8/2007 Buy 21,083 $19.04
---------------------------------------------------------------------------
OSS Overseas 3/9/2007 Buy 158,126 $19.40
---------------------------------------------------------------------------
OSS Overseas 3/9/2007 Buy 26,354 $19.38
---------------------------------------------------------------------------
OSS Overseas 3/12/2007 Buy 131,772 $19.64
---------------------------------------------------------------------------
OSS Overseas 3/13/2007 Buy 131,772 $19.23
---------------------------------------------------------------------------
OSS Overseas 3/14/2007 Buy 52,709 $18.73
---------------------------------------------------------------------------
OSS Overseas 3/16/2007 Buy 79,063 $19.21
---------------------------------------------------------------------------
OSS Overseas 3/19/2007 Buy 79,063 $19.32
---------------------------------------------------------------------------
OSS Overseas 3/20/2007 Buy 79,063 $19.92
---------------------------------------------------------------------------
OSS Overseas 4/12/2007 Buy 44,830 $19.95
---------------------------------------------------------------------------
OSS Overseas 4/24/2007 Buy 90,609 $21.50
---------------------------------------------------------------------------
OSS Overseas 4/25/2007 Buy 83,437 $21.91
---------------------------------------------------------------------------
OSS Overseas 4/26/2007 Buy 48,641 $21.58
---------------------------------------------------------------------------
Managed Account 3/7/07 Buy 43,363 $18.49
---------------------------------------------------------------------------
Managed Account 3/29/07 Buy 30,000 $20.07
---------------------------------------------------------------------------
(d) The (i) limited partners and the General Partner of the
Partnerships, (ii) the shareholders and the advisor of OSS Overseas and (iii)
the third party which has beneficial ownership over the Managed Account have the
right to participate in the receipt of dividends from, and the proceeds from the
sale of, the securities held for the Partnerships and OSS Overseas,
respectively.
(e) Not applicable.
SCHEDULE 13D
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CUSIP NO. 428291108 PAGE 16 OF 17 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 27, 2007
OSCAR S. SCHAFER
By:/s/ Oscar S. Schafer
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Oscar S. Schafer, individually
O.S.S. CAPITAL MANAGEMENT LP
By: Schafer Brothers LLC, as General Partner
By:/s/ Oscar S. Schafer
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Name: Oscar S. Schafer
Title: Senior Managing Member
OSCAR S. SCHAFER & PARTNERS I LP
By: O.S.S. Advisors LLC, as General Partner
By:/s/ Oscar S. Schafer
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Name: Oscar S. Schafer
Title: Senior Managing Member
SCHEDULE 13D
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CUSIP NO. 428291108 PAGE 17 OF 17 PAGES
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OSCAR S. SCHAFER & PARTNERS II LP
By: O.S.S. Advisors LLC, as General Partner
By:/s/ Oscar S. Schafer
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Name: Oscar S. Schafer
Title: Senior Managing Member
O.S.S. OVERSEAS FUND LTD.
By:/s/ Oscar S. Schafer
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Name: Oscar S. Schafer
Title: Director
O.S.S. ADVISORS LLC
By:/s/ Oscar S. Schafer
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Name: Oscar S. Schafer
Title: Senior Managing Member
SCHAFER BROTHERS LLC
By:/s/ Oscar S. Schafer
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Name: Oscar S. Schafer
Title: Senior Managing Member
PETER J. GRONDIN
By:/s/ Peter J. Grondin
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Name: Peter J. Grondin, individually