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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. 2)*
----------
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)
----------
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)
----------
MAY 10, 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 14 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
2,565,947
------ ------------------------------------------------
EACH REPORTING 9 SOLE DISPOSITIVE POWER
0
------ ------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
2,565,947
- -------- -----------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,565,947
- -------- -----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- -------- -----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
11.9%
- -------- -----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- -------- -----------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- -------------------------- --------------------------
CUSIP No. 338488109 13D (PAGE 3 OF 14 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
120,090
------ ------------------------------------------------
EACH REPORTING 9 SOLE DISPOSITIVE POWER
0
------ ------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
120,090
- -------- -----------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
120,090
- -------- -----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- -------- -----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.6%
- -------- -----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- -------- -----------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- -------------------------- --------------------------
CUSIP No. 338488109 13D (PAGE 4 OF 14 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
1,193,487
------ ------------------------------------------------
EACH REPORTING 9 SOLE DISPOSITIVE POWER
0
------ ------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
1,193,487
- -------- -----------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,193,487
- -------- -----------------------------------------------------------------------
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 14 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
1,252,370
------ ------------------------------------------------
EACH REPORTING 9 SOLE DISPOSITIVE POWER
0
------ ------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
1,252,370
- -------- -----------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,252,370
- -------- -----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- -------- -----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.8%
- -------- -----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
- -------- -----------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- -------------------------- --------------------------
CUSIP No. 338488109 13D (PAGE 6 OF 14 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
1,313,577
------ ------------------------------------------------
EACH REPORTING 9 SOLE DISPOSITIVE POWER
0
------ ------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
1,313,577
- -------- -----------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,313,577
- -------- -----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- -------- -----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.1%
- -------- -----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
- -------- -----------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- -------------------------- --------------------------
CUSIP No. 338488109 13D (PAGE 7 OF 14 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
2,565,947
------ ------------------------------------------------
EACH REPORTING 9 SOLE DISPOSITIVE POWER
0
------ ------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
2,565,947
- -------- -----------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,565,947
- -------- -----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- -------- -----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
11.9%
- -------- -----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
- -------- -----------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- -------------------------- --------------------------
CUSIP No. 338488109 13D (PAGE 8 OF 14 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
2,565,947
------ ------------------------------------------------
EACH REPORTING 9 SOLE DISPOSITIVE POWER
0
------ ------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
2,565,947
- -------- -----------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,565,947
- -------- -----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- -------- -----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
11.9%
- -------- -----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- -------- -----------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
EXPLANATORY NOTE
This Amendment No. 2 to Schedule 13D ("Amendment No. 2") 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. 2 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 (as so amended, the "Original
Schedule 13D"). Capitalized terms used in this Amendment No.2 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 1. SECURITY AND ISSUER
Item 1 of the Original Schedule 13D is amended and supplemented by adding
at the end thereof following paragraph:
As set forth more fully in Item 5, on May 10, 2005, the Limited
Partnerships and OSS Overseas acquired, in aggregate, an additional 500,000
ADSs. As of that date, the Reporting Persons beneficially own, in aggregate,
2,565,947 Ordinary Shares, of which, in aggregate, 500,000 are owned in the form
of ADSs and, in aggregate, 2,065,947 are owned in the form of Ordinary Shares
held in accounts registered in the names of the Limited Partnerships and OSS
Overseas in the share registry of the Issuer.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
Item 3 of the Original Schedule 13D is amended and restated in its entirety
to read as follows:
The total amount of funds used by each of the Limited Partnerships and
OSS Overseas to purchase the securities of the Issuer as described herein was
furnished from the investment capital of the Limited Partnerships and OSS
Overseas, as applicable.
The aggregate purchase price of the 120,090 Ordinary Shares
beneficially owned by OSS I was $1,797,879, inclusive of brokerage commissions.
The aggregate purchase price of the 1,193,487 Ordinary Shares
beneficially owned by OSS II was $18,020,911, inclusive of brokerage
commissions.
- 9 -
The aggregate purchase price of the 1,252,370 Ordinary Shares
beneficially owned by OSS Overseas was $21,292,103, inclusive of brokerage
commissions.
The Depositary charged a fee of $5.00 per 100 ADSs (or portion
thereof) in connection with the surrender of the ADSs and the withdrawal of the
underlying Ordinary Shares. The total amount of funds used by each of the
Partnerships and OSS Overseas to pay such fees of the Depositary was furnished
from the investment capital of the Limited Partnerships and OSS Overseas, as
applicable.
The aggregate fees paid to the Depositary in respect of the withdrawal
of the 100,190 Ordinary Shares owned by OSS I were $5,010.
The aggregate fees paid to the Depositary in respect of the withdrawal
of the 963,387 Ordinary Shares owned by OSS II were $48,170.
The aggregate fees paid to the Depositary in respect of the withdrawal
of the 1,002,370 Ordinary Shares owned by OSS Overseas were $50,120.
ITEM 4. PURPOSE OF TRANSACTION
Item 4 of the Original Schedule 13D is amended and supplemented by adding
between the fifth and the sixth paragraph thereof, the following text:
On May 11, 2005, pursuant to and in accordance with Article L. 233-7
of the French Commercial Code (CODE DE COMMERCE), the Reporting Persons caused a
notice (the "10% Notice") to be sent to the Issuer disclosing that in concert
(within the meaning of Article L. 233-10 of the French Commercial Code (CODE DE
COMMERCE)) the Reporting Persons may be deemed to hold more than 10% of the
outstanding share capital and voting rights of the Issuer. The 10% Notice also
requested, pursuant to Art. 129 of Decret No. 67-238 dated as of March 23, 1967,
that the Issuer inform the Limited Partners and OSS Overseas of the address to
which they should deliver certificates (ATTESTATIONS D'INSCRIPTION EN COMPTE)
attesting the number of Ordinary Shares that they hold, in the event that they
wish to exercise their right as holders of more than 5% of the Ordinary Shares
to require the Issuer to include a draft resolution on the agenda of the 2005
AGM. The 10% Notice also requested that the Issuer inform the Reporting Persons
of the expected date of the 2005 AGM. A copy of the Notice is filed as Exhibit 3
to this Amendment No. 2 and is incorporated herein by reference.
On May 11, 2005, Gerard Soula, Chairman and Chief Executive Officer of
the Issuer, telephoned Mr. Schafer in New York. Mr. Soula and Mr. Schafer
discussed the effectiveness of the current board of directors of the Issuer in
general terms during a conversation that lasted approximately 15 minutes.
However, no decisions were taken on any particular course of action during this
conversation.
ITEM 5. INTERESTS IN SECURITIES OF THE ISSUER
Item 5 of the Original Schedule 13D is amended and restated in its entirety
to read as
- 10 -
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 21,651,590
Ordinary Shares outstanding as September 30, 2004, as reported by the Issuer in
its unaudited consolidated financial statements for the nine months then ended,
as filed with the United States Securities and Exchange Commission on the
Issuer's Form 6-K dated December 30, 2004. 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.
- ------------------- ------------------- ------------ ------------------- ---------------------
Number of Ordinary Number of Ordinary
Aggregate Number Shares: Sole Power Shares: Shared Power
of Ordinary Shares Approximate to Vote or to to Vote or to
Reporting Person Beneficially Owned Percentage Dispose Dispose
- ------------------- ------------------- ------------ ------------------- ---------------------
Investment Manager 2,565,947 11.9% 0 2,565,947
- ------------------- ------------------- ------------ ------------------- ---------------------
OSS I LP 120,090 0.6% 0 120,090
- ------------------- ------------------- ------------ ------------------- ---------------------
OSS II LP 1,193,487 5.5% 0 1,193,487
- ------------------- ------------------- ------------ ------------------- ---------------------
OSS Overseas 1,252,370 5.8% 0 1,252,370
- ------------------- ------------------- ------------ ------------------- ---------------------
General Partner 1,313,577 6.1% 0 1,313,577
- ------------------- ------------------- ------------ ------------------- ---------------------
SB LLC 2,565,947 11.9% 0 2,565,947
- ------------------- ------------------- ------------ ------------------- ---------------------
Mr. Schafer 2,565,947 11.9% 0 2,565,947
- ------------------- ------------------- ------------ ------------------- ---------------------
(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 or ADSs.
- ----------------- ---------- ------------ ------------------- -----------------
Number of Ordinary Price Per Share/
Reporting Person Date Buy or Sell Shares/ ADSs ADS
- ----------------- ---------- ------------ ------------------- -----------------
OSS I 3/14/2005 Buy 4,160 $14.50
- ----------------- ---------- ------------ ------------------- -----------------
OSS I 5/10/2005 Buy 19,900 $17.43
- ----------------- ---------- ------------ ------------------- -----------------
- ----------------- ---------- ------------ ------------------- -----------------
OSS II 3/14/2005 Buy 46,520 $14.50
- ----------------- ---------- ------------ ------------------- -----------------
OSS I 5/10/2005 Buy 230,100 $17.43
- ----------------- ---------- ------------ ------------------- -----------------
- ----------------- ---------- ------------ ------------------- -----------------
OSS Overseas 3/14/2005 Buy 49,320 $14.50
- ----------------- ---------- ------------ ------------------- -----------------
OSS I 5/10/2005 Buy 250,000 $17.43
- ----------------- ---------- ------------ ------------------- -----------------
All of the transactions listed above were effected in the open market.
On April 29, 2005, in connection with the surrender of the ADSs and
the withdrawal of the underlying Ordinary Shares, the Bank of New York caused
100,190, 963,387, and 1,002,370 Ordinary Shares to be transferred to accounts
registered in the names of OSS I LP, OSS II LP and OSS Overseas, respectively,
in the share registry of the Issuer. This transaction did not involve any change
in the number of Ordinary Shares beneficially owned by the Reporting
- 11 -
Persons.
(d) The (i) limited partners and the General Partner of the
Partnerships and (ii) the shareholders and the advisor of OSS Overseas 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.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
RESPECT TO THE SECURITIES OF THE ISSUER
Item 6 of the Original Schedule 13D is amended and restated in its entirety
to read as follows:
Except as otherwise set forth in this Statement on Schedule 13D,
including the Deposit Agreement, none of the Reporting Persons has any contract,
arrangement, understanding or relationship (legal or otherwise) with any person
with respect to the Ordinary Shares, including but not limited to transfer or
voting of any of the securities, finder's fees, joint ventures, loan or option
arrangements, puts or calls, guarantees of profits, division of profits or loss,
or the giving or withholding of proxies.
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).
Exhibit 2 Notice of Ownership of More than 5% of Share Capital and
Voting Rights Delivered to the Issuer pursuant to Article
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
233-7 of the French Commercial Code (CODE DE COMMERCE).
- 12 -
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: May 11, 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
- 13 -
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
- 14 -
EXHIBIT 3
[LETTERHEAD OF O.S.S. CAPITAL MANAGEMENT LP]
May 11, 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: Notice of Ownership of More than 10% of Share Capital and Voting Rights of
Flamel Technologies S.A. pursuant to Article L. 233-7 of the CODE DE
COMMERCE.
Monsieur le President:
Reference is made to that certain letter, dated April 29, 2005, giving
Notice of Ownership of More than 5% of Share Capital and Voting Rights of Flamel
Technologies S.A. pursuant to Article L. 233-7 of the CODE DE COMMERCE (the "5%
Notice"). Capitalized terms used in this letter but not otherwise defined herein
shall have the meanings ascribed thereto in the 5% Notice.
The 5% Notice advised you that Oscar S. Schafer & Partners I LP, a
Delaware limited partnership, Oscar S. Schafer & Partners II LP, a Delaware
limited partnership, and O.S.S. Overseas Fund Ltd., a Cayman Islands exempted
company, acting in concert (DE CONCERT) within the meaning of Art. L. 233-10 of
the French Commercial Code (CODE DE COMMERCE) held as of April 29, 2005, an
aggregate of 2,065,947 Ordinary Shares, representing approximately 9.54 % of the
share capital and voting rights of Flamel, based on the 21,651,590 Ordinary
Shares outstanding as September 30, 2004, as reported by the Issuer in its
unaudited consolidated financial statements for the nine months then ended, as
filed with the United States Securities and Exchange Commission on the Issuer's
Form 6-K dated December 30, 2004. These Ordinary Shares are held in registered
accounts in the names of the foregoing entities as follows:
- ---------------------------------- -------------------- ----------------------
PERCENTAGE OF FLAMEL
NUMBER OF ORDINARY SHARE CAPITAL AND
REGISTERED HOLDER SHARES VOTING RIGHTS
- ---------------------------------- -------------------- ----------------------
Oscar S. Schafer & Partners I LP 100,190 0.46%
- ---------------------------------- -------------------- ----------------------
Oscar S. Schafer & Partners II LP 963,387 4.45%
- ---------------------------------- -------------------- ----------------------
O.S.S. Overseas Fund Ltd. 1,002,370 4.63%
- ---------------------------------- -------------------- ----------------------
TOTAL 2,065,947 9.54%
- ---------------------------------- -------------------- ----------------------
This letter is to advise you that on May 10, 2005, Oscar S. Schafer &
Partners I LP, Oscar S. Schafer & Partners II LP, and O.S.S. Overseas Fund Ltd.
purchased an aggregate of 500,000 Flamel ADSs, giving rise to beneficial
ownership of 500,000 underlying Ordinary Shares deposited with the Depositary.
Accordingly, as of that date, Oscar S. Schafer & Partners I LP, Oscar S. Schafer
& Partners II LP, and O.S.S. Overseas Fund Ltd., acting DE CONCERT, may be
deemed to beneficially own an aggregate of 2,565,947 Ordinary Shares,
representing approximately 11.85% of the share capital and voting rights of
Flamel. The ADSs and Ordinary Shares are held by the foregoing entities as
follows:
- ---------------------------------- ----------- ----------- ----------- ---------------
TOTAL
NUMBER OF PERCENTAGE OF
NUMBER OF ORDINARY FLAMEL SHARE
ORDINARY NUMBER OF SHARES & CAPITAL AND
REGISTERED HOLDER SHARES ADS ADSs VOTING RIGHTS
- ---------------------------------- ----------- ----------- ----------- ---------------
Oscar S. Schafer & Partners I LP 100,190 19,900 120,090 0.55%
- ---------------------------------- ----------- ----------- ----------- ---------------
Oscar S. Schafer & Partners II LP 963,387 230,100 1,193,487 5.51%
- ---------------------------------- ----------- ----------- ----------- ---------------
O.S.S. Overseas Fund Ltd. 1,002,370 250,000 1,252,370 5.78%
- ---------------------------------- ----------- ----------- ----------- ---------------
TOTAL 2,065,947 500,000 2,565,947 11.85%
- ---------------------------------- ----------- ----------- ----------- ---------------
Accordingly, as of May 10, 2005, Oscar S. Schafer & Partners I LP, Oscar S.
Schafer & Partners II LP, and O.S.S. Overseas Fund Ltd. may be deemed to hold,
DE CONCERT, more than 10% of the outstanding share capital and voting rights of
Flamel. This notice of ownership of share capital and voting rights is,
therefore, being delivered to Flamel in accordance with the provisions of
Article L.233-7 of the French Commercial Code (CODE DE COMMERCE).
In addition, O.S.S. Advisors LLC, a Delaware limited liability
company, O.S.S. Capital Management LP, a Delaware limited partnership, and
Schafer Brothers LLC, a Delaware limited liability company, none of which hold
any Ordinary Shares registered in their own names, may also be deemed to be
acting DE CONCERT with Oscar S. Schafer & Partners I LP, Oscar S. Schafer &
Partners II LP, and O.S.S. Overseas Fund Ltd. because these entities are under
common control and may have shared power to direct the disposition or the voting
of the Ordinary Shares set forth above that are held by and registered in the
names of Oscar S. Schafer & Partners I LP, Oscar S. Schafer & Partners II LP,
and O.S.S. Overseas Fund Ltd.
Your attention is drawn to the request for certain information set
forth in the final paragraph of the 5% Notice. We note that you have still not
complied with that request. Accordingly, by this notice, pursuant to and in
accordance with Art. 129 of DECRET NO. 67-238, DATED AS OF MARCH 23, 1967,
Flamel is again requested on behalf of Oscar S. Schafer & Partners I LP, Oscar
S. Schafer & Partners II LP, and O.S.S. Overseas Fund Ltd., to advise them of
(i) the place where they should deliver certificates (ATTESTATIONS D'INSCRIPTION
EN COMPTE) attesting that the 2,065,947 Ordinary Shares set forth above are held
in registered accounts in their respective names, and (ii) the proposed date of
the forthcoming annual general meeting of the shareholders of Flamel. The
foregoing information should be sent as soon as possible by e-mail to the
following address: oschafer@osscapital.com. Pursuant to Art. 120-1 of DECRET NO.
67-238, DATED AS OF MARCH 23, 1967, this notice constitutes the express written
agreement of the undersigned parties to be notified by e-mail at the foregoing
e-mail address. In addition, Flamel
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is requested to confirm the foregoing information in writing by registered mail
(PAR LETTRE RECOMMANDE AVEC DEMAND D'AVIS DE RECEPTION).
Sincerely,
/s/ Oscar S. Schafer
--------------------------------------
Oscar S. Schafer, individually and
(a) as Director, for O.S.S. Overseas Fund Ltd.;
and
(b) as Senior Managing Member of:
(1) O.S.S. Advisors LLC, for itself and as
the general partner of
(A) Oscar S. Schafer & Partners I LP;
and
(B) Oscar S. Schafer & Partners II LP;
and
(2) Schafer Brothers LLC, for itself and as
the general partner of
O.S.S. Capital Management LP
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