UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
(AMENDMENT NO. 3)
Under the Securities Exchange Act of 1934
LAYNE CHRISTENSEN COMPANY
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(Name of Issuer)
Common Stock, $.01 par value
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(Title of Class of Securities)
521050104
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(CUSIP Number)
Wynnefield Partners Small Cap Value, L.P.
450 Seventh Avenue
New York, New York 10123
Attention: Mr. Nelson Obus
(212) 760-0134
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(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
Copy to:
Jeffrey S. Tullman, Esq.
Kane Kessler PC
1350 Avenue of the Americas
New York, New York 10019
(212) 541-6222
March 26, 2004
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(Date of Event which requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which 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 / /.
CUSIP NO. 521050104 SCHEDULE 13D Page 2 of 13 Pages
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Wynnefield Partners Small Cap Value, L.P. 13-3688497
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See
Instructions) (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
318,500
NUMBER OF ------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 0
EACH ------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 318,500
------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
318,500
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.6%
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14 TYPE OF REPORTING PERSON*
PN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 521050104 SCHEDULE 13D Page 3 of 13 Pages
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Wynnefield Small Cap Value Offshore Fund, Ltd. (No IRS Identification
No.)
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See
Instructions) (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
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7 SOLE VOTING POWER
185,900
NUMBER OF ------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 0
EACH ------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 185,900
------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
185,900
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.5%
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14 TYPE OF REPORTING PERSON*
CO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 521050104 SCHEDULE 13D Page 4 of 13 Pages
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Wynnefield Partners Small Cap Value L.P. I 13-3953291
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See
Instructions) (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
380,406
NUMBER OF ------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 0
EACH ------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 380,406
------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
380,406
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.1%
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14 TYPE OF REPORTING PERSON*
PN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 521050104 SCHEDULE 13D Page 5 of 13 Pages
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Channel Partnership II, L.P. 22-3215653
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See
Instructions) (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
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7 SOLE VOTING POWER
280
NUMBER OF ------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 0
EACH ------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 280
------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
280
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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%
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14 TYPE OF REPORTING PERSON*
PN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 521050104 SCHEDULE 13D Page 6 of 13 Pages
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Wynnefield Capital Management, LLC 13-4018186
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See
Instructions) (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
N/A
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
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7 SOLE VOTING POWER
698,906
NUMBER OF ------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 0
EACH ------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 698,906
------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
698,906
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.7%
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14 TYPE OF REPORTING PERSON*
OO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 521050104 SCHEDULE 13D Page 7 of 13 Pages
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Wynnefield Capital, Inc. 13-3688495
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See
Instructions) (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
N/A
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
185,900
NUMBER OF ------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 0
EACH ------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 185,900
------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
185,900
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.5%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 521050104 SCHEDULE 13D Page 8 of 13 Pages
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Wynnefield Capital, Inc. Profit Sharing & Money Purchase Plan
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See
Instructions) (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
N/A
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7 SOLE VOTING POWER
10,000
NUMBER OF ------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 0
EACH ------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 10,000
------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
10,000
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.1%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
EP
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 521050104 SCHEDULE 13D Page 9 of 13 Pages
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Nelson Obus
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See
Instructions) (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
N/A
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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7 SOLE VOTING POWER
10,280
NUMBER OF ------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 884,806
EACH ------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 10,280
------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
884,806
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
895,086
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.2%
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14 TYPE OF REPORTING PERSON*
IN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 521050104 SCHEDULE 13D Page 10 of 13 Pages
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Joshua Landes
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See
Instructions)
(a) [ ]
(b) [X]
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3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
N/A
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS 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 884,806
EACH ------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 0
------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
884,806
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
884,806
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.2%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
Item 4. Purpose of the Transaction
Item 4 is hereby amended to add the following:
On March 26, 2004, the Reporting Persons executed a standstill
agreement (the "Standstill Agreement") with the Issuer.
The Standstill Agreement provides that by April 5, 2004, the Board of
Directors of the Issuer will increase the size of the Board of Directors to
eight (8) persons and appoint Nelson Obus, President of Wynnefield Capital,
Inc., one of the Reporting Persons, to fill the newly created vacancy. The Board
of Directors will also nominate Mr. Obus for re-election as a director at the
annual meeting of stockholders scheduled to be held on June 3, 2004 and will
recommend and solicit proxies for his election to the Board of Directors at the
2004 stockholders' meeting.
The Standstill Agreement further provides that the Reporting Persons,
their affiliates and associates shall take, or refrain from taking, the
following actions, as the case may be, unless requested in writing by the
President of the Issuer or by resolution adopted by a majority of the Issuer's
directors:
(a) not to effect, propose, cause or participate in, other than solely in
connection with the nomination or election of Mr. Obus to the Issuer's Board of
Directors, any solicitation of proxies in any election contest to the Board of
Directors of the Issuer;
(b) withdraw the shareholder proposal previously submitted by the Reporting
Persons to the Issuer for inclusion in the Issuer's proxy statement which
proposed that all directors of the Issuer be elected annually and not by classes
(the "Shareholder Proposal") and not submit such Shareholder Proposal, or a
proposal having the same effect, for inclusion in the Issuer's future proxy
statements; or
(c) form, join or participate in a "group" with respect to any voting
securities of the Issuer for the purpose of effecting any of the actions set
forth in subsections (a) or (b) above;
provided, however, that none of the foregoing shall prevent Mr. Obus from
exercising his fiduciary duty as a director nor prevent the Reporting
Persons in their discretion from voting in favor of or against any matter
submitted to stockholders for approval.
The Standstill Agreement expires on the earlier of (i) the
date that Mr. Obus ceases to be a member of the Issuer's Board of Directors, or
(ii) the date which is 30 days prior to the last date on which a stockholder may
give notice to the Issuer of its intention to submit a matter for action at the
Issuer's 2007 annual meeting of stockholders.
Effective April 2, 2004, the Issuer's Board of Directors
increased the size of the Board and elected Nelson Obus as a Class III
director to fill the vacancy. Wynnefield Capital Small Cap Value, L.P.
withdrew its shareholder proposal and supporting statement for inclusion in
the Issuer's proxy statement in connection with its 2004 annual meeting of
stockholders.
Item 5. Interest in Securities of the Issuer
The first paragraph of Item 5 is hereby amended and restated
to read as follows:
The following table sets forth certain information with
respect to the Shares beneficially owned directly by the Reporting Persons.
Name Number of Shares Approximate Percentage of
---- ---------------- Outstanding Shares
------------------
Partners(1) 318,500 2.6%
Fund(2) 185,900 1.5%
Partners I(3) 380,406 3.1%
Channel(4) 280 0.0%
Plan(4) 10,000 0.1%
Total 895,086 7.2%
(1) WCM, Mr. Obus and Mr. Landes have an indirect beneficial interest in these
shares.
(2) WCI, Mr. Obus and Mr. Landes have an indirect beneficial interest in these
shares.
(3) WCM, Mr. Obus and Mr. Landes have an indirect beneficial interest in these
shares.
(4) Mr. Obus has an indirect interest in these shares.
The sixth paragraph of Item 5 is hereby amended and restated
to read as follows:
In the aggregate, the Reporting Persons may be deemed to own
beneficially (and may be deemed to have voting and dispositive power over)
895,086 Shares, constituting approximately 7.2% of the outstanding Shares.
The percentage of Shares owned as reported herein is based upon 12,357,915
Shares outstanding on November 20, 2003, as set forth in the Issuer's most
recent report on Form 10-Q for the period ended October 31, 2003.
The eighth paragraph of Item 5 is hereby amended to add the
following:
The Reporting Persons effected the following transactions in
Shares during the past 60 days.
Transaction # of Shares Date Sale Price
----------- ----------- ---- ----------
(i) Partners I:
Sale 5,000 March 3, 2004 $14.70
Sale 3,000 March 4, 2004 $14.75
Sale 2,180 March 5, 2004 $14.82
Sale 4,007 March 8, 2004 $14.94
Sale 500 March 9, 2004 $15.22
Sale 657 March 17, 2004 $14.16
(ii) Fund:
Sale 900 March 19, 2004 $14.10
(iii) Channel:
Sale 2,000 March 1, 2004 $14.01
Sale 2,620 March 3, 2004 $14.70
Sale 5,100 March 31, 2004 $14.41
(iv) Plan:
Sale 4,500 March 1, 2004 $13.85
Sale 3,600 March 2, 2004 $13.85
Item 7. Material to be Filed as Exhibits
Exhibit 1 Standstill Agreement dated as of March 26, 2004 between the
Issuer and the Reporting Persons.
SIGNATURE
After reasonable inquiry and to the best of each of the
undersigned's knowledge and belief, each of the undersigned certifies that the
information set forth in this statement is true, complete and correct.
Date: April 5, 2004.
------------------------------------------------------- ----------------------------------------------------
Wynnefield Partners Small Cap Value, L.P. Wynnefield Partners Small Cap Value L.P. I
By: Wynnefield Capital Management, LLC, its General By: Wynnefield Capital Management, LLC, its General
Partner Partner
By: /s/ Nelson Obus By: /s/ Nelson Obus
--------------- ---------------
Co-Managing Member Co-Managing Member
------------------------------------------------------- ----------------------------------------------------
Wynnefield Small Cap Value Offshore Fund, Ltd. Wynnefield Capital Management, LLC
By: Wynnefield Capital, Inc.
By: /s/ Nelson Obus
By: /s/ Nelson Obus ---------------
--------------- Co-Managing Member
President
------------------------------------------------------- ----------------------------------------------------
Wynnefield Capital, Inc.
By: /s/ Nelson Obus /s/ Nelson Obus
--------------- ---------------
President Nelson Obus
------------------------------------------------------- ----------------------------------------------------
Channel Partnership II, L.P.
/s/ Joshua Landes By: /s/ Nelson Obus
------------------ ---------------
Joshua Landes General Partner
------------------------------------------------------- ----------------------------------------------------
Wynnefield Capital, Inc. Profit Sharing
& Money Purchase Plan
------------------------------------------------------- ----------------------------------------------------
By:/s/ Nelson Obus
---------------
Authorized Signatory
------------------------------------------------------- ----------------------------------------------------