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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 8)*
----------
FLAMEL TECHNOLOGIES S.A.
(Name of Issuer)
ORDINARY SHARES, NOMINAL VALUE (EURO)0.122 PER SHARE
(Title of Class of Securities)
ISIN NO. FR0004018711 (ORDINARY SHARES)
CUSIP 338488109 (ADSs)
(CUSIP Number)(1)
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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 of Communication)
----------
JUNE 16, 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 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. [ ]
- --------------------
(1) The Ordinary Shares have no CUSIP number. The ISIN number for the Ordinary
Shares is FR0004018711. The CUSIP number for the ADSs is 338488109.
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- -------------------------- --------------------------
CUSIP No. 338488109 13D (PAGE 2 OF 13 PAGES)
ISIN No. FR0004018711
- -------------------------- --------------------------
- -------- -----------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
O.S.S. Capital Management LP
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
- -------- -----------------------------------------------------------------------
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 PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
- -------- -----------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware, USA
- -------- -----------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
0
------ ------------------------------------------------
BENEFICIALLY OWNED BY 8 SHARED VOTING POWER
2,665,947
------ ------------------------------------------------
EACH REPORTING 9 SOLE DISPOSITIVE POWER
0
------ ------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
2,665,947
- -------- -----------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,665,947
- -------- -----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- -------- -----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
11.7%
- -------- -----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- -------- -----------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- -------------------------- --------------------------
CUSIP No. 338488109 13D (PAGE 3 OF 13 PAGES)
ISIN No. FR0004018711
- -------------------------- --------------------------
- -------- -----------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
Oscar S. Schafer & Partners I LP
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
- -------- -----------------------------------------------------------------------
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 PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
- -------- -----------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware, USA
- -------- -----------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
0
------ ------------------------------------------------
BENEFICIALLY OWNED BY 8 SHARED VOTING POWER
124,070
------ ------------------------------------------------
EACH REPORTING 9 SOLE DISPOSITIVE POWER
0
------ ------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
124,070
- -------- -----------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
124,070
- -------- -----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- -------- -----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.5%
- -------- -----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- -------- -----------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- -------------------------- --------------------------
CUSIP No. 338488109 13D (PAGE 4 OF 13 PAGES)
ISIN No. FR0004018711
- -------------------------- --------------------------
- -------- -----------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
Oscar S. Schafer & Partners II LP
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
- -------- -----------------------------------------------------------------------
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 PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
- -------- -----------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware, USA
- -------- -----------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
0
------ ------------------------------------------------
BENEFICIALLY OWNED BY 8 SHARED VOTING POWER
1,239,507
------ ------------------------------------------------
EACH REPORTING 9 SOLE DISPOSITIVE POWER
0
------ ------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
1,239,507
- -------- -----------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,239,507
- -------- -----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- -------- -----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.5%
- -------- -----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- -------- -----------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- -------------------------- --------------------------
CUSIP No. 338488109 13D (PAGE 5 OF 13 PAGES)
ISIN No. FR0004018711
- -------------------------- --------------------------
- -------- -----------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
O.S.S. Overseas Fund Ltd
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
- -------- -----------------------------------------------------------------------
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 PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
- -------- -----------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
- -------- -----------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
0
------ ------------------------------------------------
BENEFICIALLY OWNED BY 8 SHARED VOTING POWER
1,302,370
------ ------------------------------------------------
EACH REPORTING 9 SOLE DISPOSITIVE POWER
0
------ ------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
1,302,370
- -------- -----------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,302,370
- -------- -----------------------------------------------------------------------
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%
- -------- -----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
- -------- -----------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- -------------------------- --------------------------
CUSIP No. 338488109 13D (PAGE 6 OF 13 PAGES)
ISIN No. FR0004018711
- -------------------------- --------------------------
- -------- -----------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
O.S.S. Advisors LLC
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
- -------- -----------------------------------------------------------------------
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 PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
- -------- -----------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware, USA
- -------- -----------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
0
------ ------------------------------------------------
BENEFICIALLY OWNED BY 8 SHARED VOTING POWER
1,363,577
------ ------------------------------------------------
EACH REPORTING 9 SOLE DISPOSITIVE POWER
0
------ ------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
1,363,577
- -------- -----------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,363,577
- -------- -----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- -------- -----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.0%
- -------- -----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
- -------- -----------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- -------------------------- --------------------------
CUSIP No. 338488109 13D (PAGE 7 OF 13 PAGES)
ISIN No. FR0004018711
- -------------------------- --------------------------
- -------- -----------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
Schafer Brothers LLC
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
- -------- -----------------------------------------------------------------------
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 PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
- -------- -----------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware, USA
- -------- -----------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
0
------ ------------------------------------------------
BENEFICIALLY OWNED BY 8 SHARED VOTING POWER
2,665,947
------ ------------------------------------------------
EACH REPORTING 9 SOLE DISPOSITIVE POWER
0
------ ------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
2,665,947
- -------- -----------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,665,947
- -------- -----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- -------- -----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
11.7%
- -------- -----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
- -------- -----------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- -------------------------- --------------------------
CUSIP No. 338488109 13D (PAGE 8 OF 13 PAGES)
ISIN No. FR0004018711
- -------------------------- --------------------------
- -------- -----------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
Oscar S. Schafer
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
- -------- -----------------------------------------------------------------------
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 PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
- -------- -----------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware, USA
- -------- -----------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
0
------ ------------------------------------------------
BENEFICIALLY OWNED BY 8 SHARED VOTING POWER
2,665,947
------ ------------------------------------------------
EACH REPORTING 9 SOLE DISPOSITIVE POWER
0
------ ------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
2,665,947
- -------- -----------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,665,947
- -------- -----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- -------- -----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
11.7%
- -------- -----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- -------- -----------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
EXPLANATORY NOTE
This Amendment No. 8 to Schedule 13D ("Amendment No. 7") is being filed on
behalf of Oscar S. Schafer & Partners I LP, a Delaware limited partnership ("OSS
I LP"), Oscar S. Schafer & Partners II LP, a Delaware limited partnership ("OSS
II LP" and together with OSS I LP, the "Limited Partnerships"), O.S.S. Advisors
LLC, a Delaware limited liability company (the "General Partner"), O.S.S.
Overseas Fund Ltd., a Cayman Islands exempted company ("OSS Overseas"), O.S.S.
Capital Management LP, a Delaware limited partnership, (the "Investment
Manager"), Schafer Brothers LLC, a Delaware limited liability company ("SB
LLC"), and Mr. Oscar S. Schafer ("Mr. Schafer", and together with the Limited
Partnerships, the General Partner, OSS Overseas, the Investment Manager and SB
LLC, the "Reporting Persons"), who serves as the senior managing member of the
General Partner and SB LLC. This Amendment No. 8 relates to the ordinary shares,
nominal value (euro)0.122 per share ("Ordinary Shares"), of Flamel Technologies
S.A., a SOCIETE ANONYME organized under the laws of the Republic of France (the
"Issuer"), and amends the Schedule 13D filed with the United States Securities
and Exchange Commission (the "SEC") on April 18, 2005, as amended by Amendment
No. 1, filed with the SEC on April 29, 2005, Amendment No. 2, filed with the SEC
on May 11, 2005, Amendment No. 3, filed with the SEC on May 12, 2005, Amendment
No. 4, filed with the SEC on May 13, 2005, Amendment No. 5, filed with the SEC
on June 2, 2005, Amendment No. 6, filed with the SEC on June 3, 2005, and
Amendment No. 7, filed with the SEC on June 14, 2005 (as so amended, the
"Original Schedule 13D"). Capitalized terms used in this Amendment No. 8 but not
otherwise defined herein shall have the meanings ascribed to them in the
Original Schedule 13D. Except as amended hereby the Original Schedule 13D
remains in effect.
ITEM 4. PURPOSE OF TRANSACTION
Item 4 of the Original Schedule 13D is amended and supplemented by adding
immediately before the paragraph beginning "Except as set forth herein . . ."
the following text:
On June 14, 2005, Gerard Soula, President and Chief Executive Officer
of the Issuer, issued a further letter to shareholders (the "June 14 Letter").
On the morning of June 15, 2005, the Issuer hosted a conference call (the
"Second Conference Call") in which Mr. Soula and Stephen Willard, the General
Counsel and Chief Financial Officer of the Issuer, participated.
On June 16, 2005, on behalf of the Limited Partnerships and OSS
Overseas, Mr. Schafer sent a letter (the "Third OSS Letter") to Mr. Soula, in
which Mr. Schafer responded to the June 14 Letter and the Second Conference
Call. The Third OSS Letter is attached as Exhibit 11 to this Amendment No. 8 and
is incorporated herein by reference.
ITEM 5. INTERESTS IN SECURITIES OF THE ISSUER
Explanatory note
- ----------------
On June 15, 2005, the Issuer filed its Annual Report on Form 20-F for
the Year ended December 31, 2004. On page 43 of that filing the Issuer disclosed
that as of May 16, 2005 there were 22,701,595 Ordinary Shares outstanding. The
percentages set forth in this Amendment No. 8 have been amended and restated to
reflect this most recent disclosure regarding the number of
-9-
Ordinary Shares outstanding. Any changes to the percentages set forth under Item
5 and on the cover pages to this Amendment No. 8 result from a recalculation on
the basis of the most recent number of Ordinary Shares outstanding. SINCE THE
FILING OF AMENDMENT NO. 7, NO REPORTING PERSON HAS BOUGHT OR SOLD ANY ORDINARY
SHARES OR ADSS NOR HAS THERE OTHERWISE BEEN ANY CHANGE IN THE NUMBER OF ORDINARY
SHARES THE REPORTING PERSONS BENEFICIALLY OWN.
Paragraphs (a) and (b) of Item 5 of the Original Schedule 13D are
amended and restated in their entirety to read as follows:
(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 22,701,595
Ordinary Shares outstanding as May 16, 2005, as reported by the Issuer on page
43 of its Annual Report on Form 20-F for the Year ended December 31, 2004, as
filed with the United States Securities and Exchange Commission on June 15,
2005. 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 direct the vote, sole power to dispose or to direct the
disposition, or shared power to dispose or direct the disposition, in each case
as of the date hereof.
- ------------------- -------------------- ------------ ---------------------- ----------------------
AGGREGATE NUMBER OF NUMBER OF ORDINARY NUMBER OF ORDINARY
ORDINARY SHARES APPROXIMATE SHARES: SOLE POWER SHARES: SHARED POWER
REPORTING PERSON BENEFICIALLY OWNED PERCENTAGE TO VOTE OR TO DISPOSE TO VOTE OR TO DISPOSE
- ------------------- -------------------- ------------ ---------------------- ----------------------
Investment Manager 2,665,947 11.7% 0 2,665,947
- ------------------- -------------------- ------------ ---------------------- ----------------------
OSS I LP 124,070 0.5% 0 124,070
- ------------------- -------------------- ------------ ---------------------- ----------------------
OSS II LP 1,239,507 5.5% 0 1,239,507
- ------------------- -------------------- ------------ ---------------------- ----------------------
OSS Overseas 1,302,370 5.7% 0 1,302,370
- ------------------- -------------------- ------------ ---------------------- ----------------------
General Partner 1,363,577 6.0% 0 1,363,577
- ------------------- -------------------- ------------ ---------------------- ----------------------
SB LLC 2,665,947 11.7% 0 2,665,947
- ------------------- -------------------- ------------ ---------------------- ----------------------
Mr. Schafer 2,665,947 11.7% 0 2,665,947
- ------------------- -------------------- ------------ ---------------------- ----------------------
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
Item 7 of the Original Schedule 13D is amended and restated in its entirety
to read as follows:
The following are filed as exhibits to this statement on Schedule 13D:
Exhibit 1 Joint Filing Agreement (previously filed with the
Original Schedule 13D on April 18, 2005).
-10-
Exhibit 2 Notice of Ownership of More than 5% of Share Capital
and Voting Rights Delivered to the Issuer pursuant to
Article L. 233-7 of the French Commercial Code (CODE DE
COMMERCE) (previously filed with Amendment No. 1 to
Schedule 13D on April 29, 2005).
Exhibit 3 Notice of Ownership of More than 10% of Share Capital
and Voting Rights Delivered to the Issuer pursuant to
Article L. 233-7 of the French Commercial Code (CODE DE
COMMERCE) (previously filed with Amendment No. 2 to
Schedule 13D on May 11, 2005).
Exhibit 4 Letter to Gerard Soula, PRESIDENT ET DIRECTEUR GENERAL
of Flamel Technologies S.A. Requiring Inclusion of
Draft Resolutions on Agenda for 2005 Annual General
Meeting pursuant to Article L. 225-105 of the French
Commercial Code (CODE DE COMMERCE) (previously filed
with Amendment No. 4 to Schedule 13D on May 13, 2005).
Exhibit 5 Text of Draft Resolutions to be Proposed at Annual
General Meeting of Shareholders of Flamel Technologies
S.A. (previously filed with Amendment No. 4 to Schedule
13D on May 13, 2005).
Exhibit 6 Biographical Information on Nominees for Directors
(previously filed with Amendment No. 4 to Schedule 13D
on May 13, 2005).
Exhibit 7 Reasons (L'EXPOSE DES MOTIFS) for the Proposed
Resolutions (previously filed with Amendment No. 4 to
Schedule 13D on May 13, 2005).
Exhibit 8 Letter to Gerard Soula, PRESIDENT ET DIRECTEUR GENERAL
of Flamel Technologies S.A., dated June 2, 2005
(previously filed with Amendment No. 5 to Schedule 13D
on June 2, 2005).
Exhibit 9 The OSS Voting Recommendation (previously filed with
Amendment No. 6 to Schedule 13D on June 3, 2005).
Exhibit 10 Letter to Gerard Soula, PRESIDENT ET DIRECTEUR GENERAL
of Flamel Technologies S.A., dated June 14, 2005
(previously filed with Amendment No. 7 to Schedule 13D
on June 14, 2005).
Exhibit 11 Letter to Gerard Soula, PRESIDENT ET DIRECTEUR GENERAL
of Flamel Technologies S.A., dated June 16, 2005.
-11-
SIGNATURE
After reasonable 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.
Dated: June 16, 2005
/s/ Oscar S. Schafer
------------------------------
Oscar S. Schafer, individually
O.S.S. CAPITAL MANAGEMENT LP
By: Schafer Brothers LLC
as General Partner
By: /s/ Oscar S. Schafer
------------------------------
Name: Oscar S. Schafer
Title: Senior Managing Member
OSCAR S. SCHAFER & PARTNERS I LLP
By: O.S.S. Advisors LLC
as General Partner
By: /s/ Oscar S. Schafer
------------------------------
Name: Oscar S. Schafer
Title: Senior Managing Member
OSCAR S. SCHAFER & PARTNERS II LLP
By: O.S.S. Advisors LLC
as General Partner
By: /s/ Oscar S. Schafer
------------------------------
Name: Oscar S. Schafer
Title: Senior Managing Member
-12-
O.S.S. OVERSEAS FUND LTD
By: /s/ Oscar S. Schafer
------------------------------
Name: Oscar S. Schafer
Title: Director
O.S.S. ADVISORS LLC
By: /s/ Oscar S. Schafer
------------------------------
Name: Oscar S. Schafer
Title: Senior Managing Member
SCHAFER BROTHERS LLC
By: /s/ Oscar S. Schafer
------------------------------
Name: Oscar S. Schafer
Title: Senior Managing Member
-13-
EXHIBIT 11
[Letterhead of O.S.S. Capital Management LP]
June 16, 2005
BY FACSIMILE AND FEDERAL EXPRESS
Gerard Soula
President, Directeur General
Flamel Technologies S.A.
Parc Club du Moulin a Vent
33 avenue du Dr. Georges Levy
69693 Venissieux cedex France
RE: YOUR LETTER TO SHAREHOLDERS DATED JUNE 14, 2005.
Monsieur le President:
I am writing on behalf of Oscar S. Schafer & Partners I LP, Oscar S.
Schafer & Partners II LP and O.S.S. Overseas Fund Ltd (collectively, the "OSS
Shareholders") which acting DE CONCERT, within the meaning of Art. L. 233-10 of
the French Commercial Code, have proposed resolutions for the election of a new
board of directors to be voted on at the Annual Meeting of Shareholders of
Flamel to be held on June 22, 2005 (the "2005 AGM"). The OSS Shareholders are
also, acting DE CONCERT, the largest shareholder in Flamel.
I am writing in response to your letter to your "fellow shareholders"
dated June 14, 2005 and to certain of your comments yesterday by conference
call.
As both the letter and the conference call made quite clear: You still
don't get it.
Specifically:
1. You can not besmirch the character of honorable people. As your own
lawyers have acknowledged, Elie Vannier is not currently the subject
of any legal proceedings. In fact, Mr. Vannier has been entirely
exonerated of any wrongdoing. The Paris Court of Appeals found that he
was INNOCENT OF ANY VIOLATION OF ANY LAW. That decision is definitive
and final. Your own lawyer apologized publicly for this mistake. Yet
you continue to attack Mr. Vannier. Furthermore, contrary to your
insinuations that the stock price of Enzon fell under Randy H.
Thurman's leadership, the stock price actually INCREASED OVER 1500%
during Mr. Thurman's tenure as chairman of Enzon. You can not protect
your own position by making false accusations against others and their
records of achievement.
2. You claim that Flamel's $100 million cash position was raised from
operations. In fact, Flamel actually raised more than $60 million by
selling stock to your fellow shareholders at over $31 per share in
October 2003. You should remember this, because you sold 300,000 of
your own shares at the same price at the same time, improving your
personal cash position by over $9 million.
3. You claimed on May 19 that you "have initiated all the projects which
create the value of Flamel today." Yet Asacard(TM) was first developed
at Cripdom Laboratories, the assets of which Flamel acquired following
Cripdom's bankruptcy in 1993. No one challenges that you are an
excellent scientist. But it is not necessary to claim the work of
others to burnish your own reputation. Flamel's superior technologies
are more than the work of one man. Contrary to your own view, Flamel
is more than just Dr. Soula. And lest there be any doubt, no matter
who developed them, Flamel's intellectual property and trade secrets
are the assets of the Company, which the proposed board of directors,
if elected, will zealously safeguard.
4. You persist in using scare tactics in an effort to preserve your
current position. It was you who solicited the letter from
GlaxoSmithKline, deliberately worrying Flamel's most significant
existing partner in an effort to protect your own offices. It is you
who continues to misstate the intentions of the OSS Shareholders with
respect to the management and employees of the Company. And it is you
who has refused to compromise with the owners of Flamel, its
shareholders, and who threatens to sell your shares, sever all ties
with Flamel and go home. Don't be surprised if those shareholders call
your bluff on June 22.
5. We have always agreed that the potential of Flamel Technologies is
great; what is dismal is your record in commercializing this
potential. Whatever your scientific success, your commercial record is
unacceptable. As you conceded on the conference call yesterday, "time
is the enemy". Dr. Soula, you have had more than ample chance to prove
your commercial abilities. The OSS Shareholders believe your time is
up.
Let me be clear. The OSS Shareholders expect that the proposed slate
of directors will make meeting the existing commitments of Flamel a top
priority. The OSS Shareholders also intend that the new board will diligently
protect the Company's intellectual property (no matter who developed it, and no
matter who infringes it), will work with the Company's existing management and
employees to make a commercial success of Flamel's superior technologies. In
furtherance of this end, the OSS Shareholders intend that the new board will
foster a climate of teamwork, good governance and accountability at Flamel. You
have made it quite clear that you have no wish to be part of this evolution.
While the OSS Shareholders and the proposed directors may have hoped that you
would play a constructive role in the Company going forward, they understand and
acknowledge your decision. If their fellow shareholders vote with them, the OSS
Shareholders will be among the first to wish you well in your new endeavors.
-2-
* * * * * *
It is time to move on: for Flamel Technologies and for you. It has not
been pleasant for the OSS shareholders to engage in this protracted exchange.
But the OSS Shareholders have done so in the sincere belief that they are acting
in the best interests of ALL Flamel's shareholders. The OSS Shareholders welcome
the decision of our fellow shareholders on June 22nd, and look forward to the
future with optimism.
Very truly yours,
/s/ Oscar S. Schafer
--------------------------------------
Oscar S. Schafer, individually, and
(1) as senior managing member of:
(a) O.S.S. Advisors LLC, for itself and as
the general partner of
(i) Oscar S. Schafer & Partners I LP;
and
(ii) Oscar S. Schafer & Partners II LP;
and
(b) Schafer Brothers LLC, for itself and as
the general partner of
O.S.S. Capital Management LP
and
(2) as director of O.S.S. Overseas Fund Ltd.
-3-