UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE
14D-9
(Rule 14d-101)
Solicitation/Recommendation Statement
Under Section 14(d)(4) of the Securities Exchange Act of 1934
(Amendment No. 2)
DOT HILL
SYSTEMS CORP.
(Name of Subject Company)
DOT HILL
SYSTEMS CORP.
(Name of Person Filing Statement)
Common Stock, $0.001 par value per share
(Title of Class of Securities)
25848T109
(CUSIP Number
of Class of Securities)
Dana W. Kammersgard
President and Chief Executive Officer
Dot Hill Systems Corp.
1351 S. Sunset Street
Longmont, CO 80501
(303)
845-3200
(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications
on Behalf of the Person Filing Statement)
With copies to:
Rama Padmanabhan, Esq.
Thomas A. Coll, Esq.
Cooley LLP
4401 Eastgate
Mall
San Diego, CA 92121
(858) 550-6000
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Check the box if the filing relates solely to preliminary communications made before the commencement of a tender offer. |
This Amendment No. 2 to Schedule 14D-9 amends and supplements the Schedule 14D-9 previously filed by Dot
Hill Systems Corp., a Delaware corporation (Dot Hill), with the Securities and Exchange Commission on September 1, 2015, relating to the offer by Seagate HDD Cayman, an exempted company with limited liability organized under the
laws of the Cayman Islands (Parent) and Denali Acquisition Sub Corp., a Delaware corporation and a wholly owned subsidiary of Parent (Purchaser), to purchase all of the outstanding shares of Dot Hills common stock,
$0.001 par value per share (the Shares), at a purchase price of $9.75 per Share, without interest, subject to any required withholding of taxes upon the terms and subject to the conditions set forth in the Offer to Purchase, dated
September 1, 2015, and the related Letter of Transmittal, each of which may be amended or supplemented from time to time.
Item 8. |
Additional Information. |
Item 8 of the Schedule 14D-9 is hereby amended and restated by deleting the
paragraph under the heading Legal Proceedings on page 49 of the Schedule 14D-9 and replacing it with the following paragraph:
Beginning on August 25, 2015, five putative class-action lawsuits challenging the Merger (captioned Jerry A. Sacks IRA v. Kammersgard,
C.A. No. 11428-VCN (filed August 25, 2015); Ahmadi v. Christ, C.A. No. 11432-VCN (filed August 26, 2015); Trager v. Dot Hill Systems Corp., C.A. No. 11439-VCN (filed August 27, 2015); Morris Akerman v. Dot Hill Systems, Corp., C.A. No. 11455-VCN
(filed September 1, 2015); and Thomas Qiong Shen v. Dot Hill Systems, Corp., C.A. No. 11466 (filed September 3, 2015)) were filed in the Court of Chancery for the State of Delaware (the Stockholder Litigation). The Stockholder Litigation
was filed against: (i) each member of Dot Hills Board of Directors; (ii) Ultimate Parent; (iii) Parent; and (iv) Purchaser. The complaints generally allege that Dot Hills directors breached their fiduciary duties in connection with the
proposed acquisition by, among other things, (a) agreeing to sell Dot Hill at an inadequate price, (b) implementing an unfair process, and (c) agreeing to certain provisions of the Acquisition Agreement that allegedly deter alternative bids. The
complaints also allege that Dot Hill, Ultimate Parent, Parent, and Purchaser aided and abetted these alleged breaches of fiduciary duty. The plaintiffs seek, among other things, an injunction against the consummation of the Offer, the Merger and the
other transactions contemplated by the Acquisition Agreement, and an award of costs and expenses, including a reasonable allowance for attorneys and experts fees. On September 3, 2015, plaintiffs filed a motion to consolidate the five
cases and to appoint lead counsel. Dot Hill intends to defend these lawsuits vigorously. On September 8, 2015, the court ordered that the five cases be consolidated into one action and appointed lead plaintiffs counsel. On
September 9, 2015, plaintiffs filed an amended consolidated class action complaint, a motion for preliminary injunction, and a motion for expedited proceedings.
Item 8 of the Schedule 14D-9 is hereby amended and restated by deleting the second paragraph under the heading U.S. Antitrust
Compliance on page 49 of the Schedule 14D-9 and replacing it with the following paragraphs:
Parent and Dot Hill filed
their Premerger Notification and Report Forms on August 28, 2015 with the FTC and the Antitrust Division in connection with the purchase of Shares in the Offer and the Merger. The required waiting period with respect to the Offer and the Merger
under the HSR Act expired on September 14, 2015 at 11:59 pm Eastern time. Accordingly, the condition to the Offer requiring that the waiting period (or any extension thereof) applicable to the Offer under the HSR Act shall have expired or
been terminated has been satisfied. The Offer continues to be subject to the remaining conditions set forth in the Offer to Purchase.
Even though the requisite waiting period under the HSR Act has expired, at any time before or after Purchasers acceptance for payment of
Shares pursuant to the Offer, if the FTC or the Antitrust Division believes that the Offer would violate the U.S. federal antitrust laws by substantially lessening competition in any line of commerce affecting U.S. consumers, the FTC or the
Antitrust Division has the authority to challenge the transaction by seeking a federal court order enjoining the transaction or, if Shares have already been acquired, requiring disposition of such Shares, or the divestiture of assets of Parent, Dot
Hill or any of their respective subsidiaries or affiliates. The U.S. state attorneys general and private persons may also bring legal action under the U.S. federal antitrust laws. While Dot Hill believes that the consummation of the Offer will not
violate any U.S. federal antitrust law, there can be no assurance that a challenge to the Offer on antitrust grounds will not be made or, if a challenge is made, what the result will be.
Item 9 of the Schedule 14D-9 is hereby amended and supplemented by adding the following
exhibit:
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Exhibit No. |
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Description |
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(a)(5)(G) |
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Form of email to Dot Hill employees from Dana Kammersgard. |
SIGNATURE
After due inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
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DOT HILL SYSTEMS, CORP. |
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By: |
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/s/ Dana W. Kammersgard |
Name: |
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Dana W. Kammersgard |
Title: |
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President and Chief Executive Officer |
Dated: September 15, 2015
Exhibit (a)(5)(G)
From: Dana Kammersgard
To: group: everyone
Update on Dot Hill Systems Corp. (Dot Hill) Sale
Hi All, Just a brief update.
Yesterday we reached a new
milestone in the process of completing the sale of Dot Hill. The initial waiting period for the US government to review the proposed acquisition expired, and we have now satisfied a critical condition under the acquisition agreement with Seagate.
The transaction will not close until early Q4FY15, and I will keep you updated on further developments. Thanks again for your support in making this an
exciting chapter for Dot Hill.
Thanks,
Dana
About the Tender Offer
THIS COMMUNICATION IS FOR
INFORMATIONAL PURPOSES ONLY AND IS NOT AN OFFER TO BUY OR THE SOLICITATION OF AN OFFER TO SELL ANY SHARES OF DOT HILL COMMON STOCK.
Seagate HDD Cayman,
an exempted company with limited liability organized under the laws of the Cayman Islands (Seagate), has filed a Tender Offer Statement on Schedule TO with the United States Securities and Exchange Commission (SEC), and Dot
Hill has filed a Solicitation/Recommendation Statement on Schedule 14D-9 with respect to the offer by Seagate and Denali Acquisition Sub Corp., a Delaware corporation and a wholly owned subsidiary of Seagate, to purchase all of the outstanding
shares of Dot Hills common stock, $0.001 par value per share (the Shares), at a purchase price of $9.75 per Share, without interest, subject to any required withholding of taxes upon the terms and subject to the conditions set
forth in the Offer to Purchase, dated September 1, 2015, and the related Letter of Transmittal, each of which may be amended or supplemented from time to time (the Offer). The Offer to Purchase, the related Letter of Transmittal and
certain other Offer documents, as well as the Solicitation/Recommendation Statement, are available to all stockholders of Dot Hill at no expense to them. Investors and security holders may obtain a free copy of these statements and other documents
filed with the SEC at the website maintained by the SEC at www.sec.gov or by directing such requests to D.F. King & Co., Inc., the Information Agent for the offer, at 866-406-2283.
DOT HILL STOCKHOLDERS AND OTHER INVESTORS ARE URGED TO READ THE TENDER OFFER MATERIALS (INCLUDING THE OFFER TO PURCHASE, RELATED LETTER OF TRANSMITTAL AND
CERTAIN OTHER OFFER DOCUMENTS) AND THE SOLICITATION/RECOMMENDATION STATEMENT, INCLUDING ALL AMENDMENTS TO THOSE MATERIALS. SUCH DOCUMENTS CONTAIN IMPORTANT INFORMATION, WHICH SHOULD BE READ CAREFULLY BEFORE ANY DECISION IS MADE WITH RESPECT TO THE
TENDER OFFER.
Forward Looking Statements
This communication contains forward-looking statements. These forward-looking statements are based on information available to Dot Hill as of the date of this
communication. Current expectations, forecasts and assumptions involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those anticipated by these forward-looking statements. The actual
results of the transaction could vary materially as a result of a number of factors, including: uncertainties as to how many of Dot Hills stockholders will tender their stock in the Offer; the possibility that competing offers will be made;
the possibility that various closing conditions for the transaction may not be satisfied or waived, including the possibility that required regulatory approvals are not obtained, are delayed or are subject to unanticipated conditions that could
adversely affect the combined company or the expected benefits of the transaction; the possibility that the transaction may not be timely completed, if at all; and the possibility that, prior to the completion of the transaction, if at all, Dot
Hills business may experience significant disruptions due to transaction-related uncertainty. Other factors that may cause actual results to differ materially include those set forth in the reports that Dot Hill files from time to time with
the SEC, including Dot Hills annual report on Form 10-K for the fiscal year ended December 31, 2014 and subsequent quarterly and current reports on Forms 10-Q and 8-K.
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