UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
(RULE 13D-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13D-1(A)
AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13D-2(A)
(Amendment No. 4)
INSIGNIA FINANCIAL GROUP, INC.
(F/K/A INSIGNIA/ESG HOLDINGS, INC.)
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(Name of Issuer)
COMMON STOCK, PAR VALUE $.01 PER SHARE
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(Title of Class of Securities)
45767A 10 5 (COMMON STOCK)
----------------------------------
(CUSIP Number)
ANDREW L. FARKAS
INSIGNIA FINANCIAL GROUP, INC.
200 PARK AVENUE
NEW YORK, NEW YORK 10166
--------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
February 17, 2003
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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 that is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(e), 13(d)-1(f) or 13(d)- 1(g), check
the following box [ ].
Note. Schedules filed in paper format shall include a signed original
and five copies of the schedule, including all exhibits. See Rule 13d-7(b) for
other parties to whom copies are to be sent.
(Continued on following pages)
SCHEDULE 13D
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CUSIP NO. 45767A 10 5
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--------- --------------------------------------------------------------------------------------------------------------------------
NAME OF REPORTING PERSONS
Andrew L. Farkas
1 S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
(Intentionally Omitted)
--------- --------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
--------- --------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- --------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not applicable
--------- --------------------------------------------------------------------------------------------------------------------------
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
--------------------------------- -------- -----------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,452,079
OWNED BY -------- -----------------------------------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH 976,386
-------- -----------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,452,079
-------- -----------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
976,386
--------- --------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,428,465
--------- --------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
--------- --------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
10.0%
--------- --------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
--------- --------------------------------------------------------------------------------------------------------------------------
SCHEDULE 13D
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CUSIP NO. 45767A 10 5
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--------- --------------------------------------------------------------------------------------------------------------------------
NAME OF REPORTING PERSONS
Metro Shelter Directives, Inc.
1 S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
(Intentionally Omitted)
--------- --------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
--------- --------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- --------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not applicable
--------- --------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
--------- --------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------- -------- -----------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY None
OWNED BY -------- -----------------------------------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH 976,141
-------- -----------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
None
-------- -----------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
976,141
--------- --------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
976,141
--------- --------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
--------- --------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.2%
--------- --------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
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SCHEDULE 13D
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CUSIP NO. 45767A 10 5
------------------------------------
--------- --------------------------------------------------------------------------------------------------------------------------
NAME OF REPORTING PERSONS
F III, Inc.
1 S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
(Intentionally Omitted)
--------- --------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) [ ]
(B) [X]
--------- --------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- --------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not applicable
--------- --------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
--------- --------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------- -------- -----------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY None
OWNED BY -------- -----------------------------------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH 245
-------- -----------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
None
-------- -----------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
245
--------- --------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
245
--------- --------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
--------- --------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
less than 1%
--------- --------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
--------- --------------------------------------------------------------------------------------------------------------------------
AMENDMENT NO. 3
TO
STATEMENT ON SCHEDULE 13D
PURSUANT TO RULE 13D-1
UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED
The undersigned hereby amend Items 4, 5, 6 and 7 of the Statement on Schedule
13D, as previously amended, filed on their behalf with the Securities and
Exchange Commission. Unless otherwise indicated, capitalized terms used herein
and not otherwise defined shall have the meaning ascribed to them in such
previously filed Statement on Schedule 13D, as amended.
ITEM 4. PURPOSE OF TRANSACTION.
Item 4 is replaced in its entirety with the following paragraphs:
The Issuer, CBRE Holding, Inc., CB Richard Ellis Services, Inc. ("CB") and Apple
Acquisition Corp., a wholly owned subsidiary of CB, have entered into an
Agreement and Plan of Merger, dated as of February 17, 2003 (the "Merger
Agreement"), pursuant to which, upon the terms and subject to the conditions set
forth therein, Apple Acquisition Corp. will be merged with and into the Issuer
(the "Merger"), with the Issuer being the surviving corporation in the Merger
and becoming a wholly owned subsidiary of CB. The Merger Agreement provides that
the Issuer's Certificate of Incorporation and the Bylaws of Apple Acquisition
Corp. will be the Certificate of Incorporation and the Bylaws, respectively, of
the surviving corporation. Under the Merger Agreement, at closing each share of
Common Stock will be converted into the right to receive $11.00 in cash (the
"Common Merger Consideration"). In addition, the Issuer has the right, but not
the obligation, to sell certain real estate assets prior to the closing of the
Merger. To the extent that the Issuer receives more than a specified amount of
cash net proceeds (generally $45 million (net of expenses) plus any amounts
contributed or transferred to the entities holding these assets between
February 17, 2003 and the closing of the Merger) for these assets, these excess
cash net proceeds will be paid to holders of Common Stock, options and warrants
as additional Common Merger Consideration, up to an additional $1.00 per share
of Common Stock. There can be no assurance that the Issuer will sell any of
these assets or, if it does, that it will receive more than the specified amount
of cash net proceeds through the asset sales. The Merger Agreement further
provides that all of the Issuer's directors will resign immediately prior to the
completion of the Merger. Following the Merger, the Issuer will cease to be a
reporting company under the Securities Exchange Act of 1934, as amended, and its
Common Stock will cease to be traded on the New York Stock Exchange. The Merger
is subject to approval by the Issuer's shareholders, receipt of debt financing,
the receipt of regulatory approvals and other customary closing conditions. The
foregoing description of the Merger Agreement is qualified in its entirety by
reference to the Merger Agreement, which was filed as an exhibit to the Issuer's
Form 8-K filed on February 20, 2003 and is incorporated by reference herein.
In connection with the Merger Agreement, AF, CB and the Company entered into a
Voting Agreement, dated February 17, 2003, pursuant to which AF has agreed to
vote, or take all necessary actions to cause to be voted, all shares of Common
Stock owned by him of record or beneficially as of the date of the Merger
Agreement or thereafter acquired (i) in favor of approval of the Merger, the
Merger Agreement, the other transactions contemplated thereby and any matter
which could reasonably be expected to facilitate the Merger and such other
transactions, and (ii) against any Acquisition Proposal (as defined in the
Merger Agreement).
Under the terms of the Merger Agreement, all outstanding options and warrants to
purchase Common Stock, whether vested or unvested, will be converted into the
right to receive an amount equal to the excess, if any, of the Common Merger
Consideration over the exercise price of such options and warrants. AF owns (i)
options to purchase 500,000 shares of Common Stock at an exercise price of $8.00
per share, (ii) options to purchase 36,000 shares of Common Stock at an exercise
price of $13.880 per share, (iii) options to purchase 14,000 shares of Common
Stock at an exercise price of $12.625 per share, and (iv) warrants ("Warrants")
to purchase 500,000 shares of Common Stock at an exercise price of $8.00 per
share (the "Warrant Exercise Price"). In a letter, dated February 17, 2003
addressed to the Issuer and CB, AF agreed that at the closing of the Merger his
Warrants will be cancelled and that he will be entitled to receive an amount in
cash equal to the excess of the Common Merger Consideration over the Warrant
Exercise Price.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
Item 5 is amended by replacing the existing information with the following:
As of February 12, 2003, the Reporting Persons beneficially held
interests in the Common Stock as follows:
Beneficial Ownership Voting Power Dispositive Power
------------------------- -------------------- ---------------------
% of
Reporting Person Shares Outstanding Sole Shared Sole Shared
---------------- ------ ----------- ---- ------ ---- ------
Metro Shelter Directives, Inc. 976,141 4.2% -- 976,141 -- 976,141
F III, Inc. 245 * -- 245 -- 245
Andrew L. Farkas 2,428,465 10.0% 945,452 976,386 945,452 976,386
----------
*Less than 1%
MSD's beneficial ownership of Common Stock includes its direct
ownership of 976,141 shares. MSD's shared voting and dispositive power results
from its relationship with AF, its sole stockholder.
F III's beneficial ownership of Common Stock includes its direct
ownership of 245 shares. F III's shared voting and dispositive power results
from its relationship with AF.
AF's beneficial ownership of Common Stock includes (i) 412,079 shares
directly owned by AF, (ii) 976,141 shares directly owned by MSD, (iii) 1,040,000
shares subject to options and warrants directly owned by AF which are currently
exercisable or will become exercisable within the next 60 days, and (iv) 245
shares directly owned by F III. AF's shared voting and dispositive power results
from his relationships as the sole stockholder of MSD and F III.
The Reporting Persons did not effect any transactions in the Common
Stock during the past 60 days.
ITEM 6 - CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER
The information set forth under Item 4 herein is hereby incorporated
herein by reference.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
99.1 Joint Press release, dated February 18, 2003
99.2 Voting Agreement, dated February 17, 2003
99.3 Letter regarding cancellation of warrants, dated February 17,
2003 from Andrew L. Farkas to the Issuer and CB Richard Ellis
Services, Inc.
SIGNATURES
After reasonable inquiry and to the best knowledge and belief of the
undersigned, the information set forth in this statement is true, complete, and
correct.
Dated: February 19, 2003
/s/ Andrew L. Farkas
-------------------------------
Andrew L. Farkas, individually
Metro Shelter Directives, Inc.
By: /s/ Andrew L. Farkas
--------------------------
Andrew L. Farkas
President
F III, Inc.
By: /s/ Andrew L. Farkas
--------------------------
Andrew L. Farkas
President