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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D/A
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 2)
ARCH CAPITAL GROUP LTD.
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(Name of Issuer)
COMMON SHARES, PAR VALUE $0.01 PER SHARE
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(Title of Class of Securities)
011576290
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(CUSIP Number)
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RICHARD M. LEVINE, ESQ.
HELLMAN & FRIEDMAN LLC
ONE MARITIME PLAZA, SUITE 1200
SAN FRANSISCO, CALIFORNIA 94111
(415) 788-5111
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(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
WITH A COPY TO:
PATRICIA A. VLAHAKIS, ESQ.
WACHTELL, LIPTON, ROSEN & KATZ
51 WEST 52ND STREET
NEW YORK, NY 10019
(212) 403-1000
DECEMBER 16, 2002
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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 ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box: [_]
Page 1 of 11 Pages
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CUSIP No. 011576290 SCHEDULE 13D/A Page 2 of 11 Pages
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
HFCP IV (BERMUDA), L.P.
I.R.S. IDENTIFICATION NO. #94-3410224
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(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 ORGANIZATION
BERMUDA
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7
SOLE VOTING POWER
10,261,918 (1)
NUMBER OF
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8
SHARES SHARED VOTING POWER
-0-
BENEFICIALLY
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9
OWNED BY SOLE DISPOSITIVE POWER
10,261,918 (1)
EACH
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10
REPORTING SHARED DISPOSITIVE POWER
-0-
PERSON WITH
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
10,261,918 (1)
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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)
27.8% (2)
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14 TYPE OF REPORTING PERSON
PN
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(1) Assumes full conversion of all Preference Shares beneficially owned by such
Reporting Person into Common Shares and the full exercise of all options
to purchase Common Shares beneficially owned by such Reporting Person.
(2) Gives effect to the new issuance of Common Shares upon the full conversion
of all Preference Shares, and the full exercise of all options, beneficially
owned by such Reporting Person.
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CUSIP No. 011576290 SCHEDULE 13D/A Page 3 of 11 Pages
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
H&F INTERNATIONAL PARTNERS IV-A (BERMUDA), L.P.
I.R.S. IDENTIFICATION NO. #94-3410226
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(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 ORGANIZATION
BERMUDA
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7
SOLE VOTING POWER
1,684,258 (3)
NUMBER OF
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8
SHARES SHARED VOTING POWER
-0-
BENEFICIALLY
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9
OWNED BY SOLE DISPOSITIVE POWER
1,684,258 (3)
EACH
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10
REPORTING SHARED DISPOSITIVE POWER
-0-
PERSON WITH
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,684,258 (3)
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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)
5.8% (4)
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14 TYPE OF REPORTING PERSON
PN
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(3) Assumes full conversion of all Preference Shares beneficially owned by such
Reporting Person into Common Shares and the full exercise of all options to
purchase Common Shares beneficially owned by such Reporting Person.
(4) Gives effect to the new issuance of Common Shares upon the full conversion
of all Preference Shares, and the full exercise of all options, beneficially
owned by such Reporting Person.
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CUSIP No. 011576290 SCHEDULE 13D/A Page 4 of 11 Pages
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
H&F INTERNATIONAL PARTNERS IV-B (BERMUDA), L.P.
I.R.S. IDENTIFICATION NO. #94-3410228
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(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 ORGANIZATION
BERMUDA
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7
SOLE VOTING POWER
556,372 (5)
NUMBER OF
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8
SHARES SHARED VOTING POWER
-0-
BENEFICIALLY
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9
OWNED BY SOLE DISPOSITIVE POWER
556,372 (5)
EACH
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10
REPORTING SHARED DISPOSITIVE POWER
-0-
PERSON WITH
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
556,372 (5)
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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)
2.0% (6)
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14 TYPE OF REPORTING PERSON
PN
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(5) Assumes full conversion of all Preference Shares beneficially owned by such
Reporting Person into Common Shares and the full exercise of all options to
purchase Common Shares beneficially owned by such Reporting Person.
(6) Gives effect to the new issuance of Common Shares upon the full conversion
of all Preference Shares, and the full exercise of all options, beneficially
owned by such Reporting Person.
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CUSIP No. 011576290 SCHEDULE 13D/A Page 5 of 11 Pages
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
H&F EXECUTIVE FUND IV (BERMUDA), L.P.
I.R.S. IDENTIFICATION NO. #94-3410229
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(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 ORGANIZATION
BERMUDA
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7
SOLE VOTING POWER
231,284 (7)
NUMBER OF
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8
SHARES SHARED VOTING POWER
-0-
BENEFICIALLY
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9
OWNED BY SOLE DISPOSITIVE POWER
231,284 (7)
EACH
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10
REPORTING SHARED DISPOSITIVE POWER
-0-
PERSON WITH
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
231,284 (7)
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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)
0.8% (8)
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14 TYPE OF REPORTING PERSON
PN
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(7) Assumes full conversion of all Preference Shares beneficially owned by such
Reporting Person into Common Shares and the full exercise of all options to
purchase Common Shares beneficially owned by such Reporting Person.
(8) Gives effect to the new issuance of Common Shares upon the full conversion
of all Preference Shares, and the full exercise of all options, beneficially
owned by such Reporting Person.
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CUSIP No. 011576290 SCHEDULE 13D/A Page 6 of 11 Pages
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
H&F INVESTORS IV (BERMUDA), L.P.
I.R.S. IDENTIFICATION NO. #94-3410230
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(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 ORGANIZATION
BERMUDA
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7
SOLE VOTING POWER
12,733,832 (9)
NUMBER OF
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SHARES SHARED VOTING POWER
-0-
BENEFICIALLY
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9
OWNED BY SOLE DISPOSITIVE POWER
12,733,832 (9)
EACH
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10
REPORTING SHARED DISPOSITIVE POWER
-0-
PERSON WITH
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
12,733,832 (9)
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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)
32.5% (10)
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14 TYPE OF REPORTING PERSON
PN
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(9) Assumes full conversion of all Preference Shares beneficially owned by such
Reporting Person into Common Shares and the full exercise of all options to
purchase Common Shares beneficially owned by such Reporting Person.
(10) Gives effect to the new issuance of Common Shares upon the full conversion
of all Preference Shares, and the full exercise of all options, beneficially
owned by such Reporting Person.
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CUSIP No. 011576290 SCHEDULE 13D/A Page 7 of 11 Pages
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
H&F CORPORATE INVESTORS IV (BERMUDA) LTD.
I.R.S. IDENTIFICATION NO. #94-3410238
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(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 ORGANIZATION
BERMUDA
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7
SOLE VOTING POWER
12,733,832 (11)
NUMBER OF
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8
SHARES SHARED VOTING POWER
-0-
BENEFICIALLY
------------------------------------------------------------------
9
OWNED BY SOLE DISPOSITIVE POWER
12,733,832 (11)
EACH
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10
REPORTING SHARED DISPOSITIVE POWER
-0-
PERSON WITH
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
12,733,832 (11)
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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)
32.5% (12)
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14 TYPE OF REPORTING PERSON
CO
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(11) Assumes full conversion of all Preference Shares beneficially owned by such
Reporting Person into Common Shares and the full exercise of all options to
purchase Common Shares beneficially owned by such Reporting Person.
(12) Gives effect to the new issuance of Common Shares upon the full conversion
of all Preference Shares, and the full exercise of all options, beneficially
owned by such Reporting Person.
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CUSIP No. 011576290 SCHEDULE 13D/A Page 8 of 11 Pages
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Reference is made to the Statement on Schedule 13D filed on November
30, 2001, as amended by Amendment No. 1 thereto filed September 23, 2003 (as so
amended, the "Schedule 13D"), on behalf of HFCP IV (Bermuda), L.P., a limited
partnership organized under the laws of Bermuda ("HFCP IV Bermuda"), H&F
International Partners IV-A (Bermuda), L.P., a limited partnership organized
under the laws of Bermuda ("HFIP IV-A Bermuda"), H&F International Partners IV-B
(Bermuda), L.P., a limited partnership organized under the laws of Bermuda
("HFIP IV-B Bermuda"), H&F Executive Fund IV (Bermuda), L.P., a limited
partnership organized under the laws of Bermuda ("HFEF IV Bermuda", and together
with HFCP IV Bermuda, HFIP IV-A Bermuda and HFIP IV-B Bermuda, the "Investors"),
H&F Investors IV (Bermuda), L.P., a limited partnership organized under the laws
of Bermuda ("HFI IV Bermuda") and H&F Corporate Investors IV (Bermuda) Ltd., a
company organized under the laws of Bermuda ("HFCI IV Bermuda"). The Investors,
together with HFI IV Bermuda and HFCI IV Bermuda are referred to herein as the
"Reporting Persons". All capitalized terms used without definition in this
Amendment No. 2 to Schedule 13D shall have the meanings set forth in the
Schedule 13D.
This Amendment No. 2 to Schedule 13D amends the Schedule 13D as follows.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
------------------------------------------------
Item 5 of the Schedule 13D is hereby amended and supplemented by adding the
following:
(a) The Reporting Persons beneficially own Common Shares of the Company by
virtue of their ownership of an aggregate of 1,116,977 Common Shares (which
include an aggregate of 3,688 Common Shares issued to John L. Bunce, Jr.
and David Tunnell, each of whom is an affiliate of the Reporting Persons,
in consideration of their service as directors of the Company, which Common
Shares are held for the benefit of the Reporting Persons), of an aggregate
of 11,614,755 Preference Shares, which are convertible into Common Shares
as described under Item 4, and of options to purchase an aggregate of 2,100
Common Shares, which options were issued to Messrs. Bunce and Tunnell, in
consideration of their service as directors of the Company, which options
are held for the benefit of the Reporting Persons. As of December 18, 2002,
the Investors collectively beneficially owned an aggregate of 12,733,832
Common Shares, assuming the full conversion of the Preference Shares into
Common Shares and the full exercise of the options to purchase Common
Shares. By reason of their relationships with the Investors, under Rule
13d-3 under the Exchange Act, each of HFCI IV Bermuda and HFI IV Bermuda
may be deemed to own beneficially all of the Common Shares that are
beneficially owned by the Investors.
Assuming the full conversion of the Preference Shares into Common Shares
and the full exercise of the options to purchase Common Shares, as of
December 18, 2002, the 12,733,832 Common Shares collectively beneficially
owned by the Reporting Persons would represent approximately 32.5% of the
outstanding Common Shares, after giving effect to the new issuance of
Common Shares upon the full conversion of the Preference Shares into Common
Shares, the full exercise of all options to purchase Common Shares
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CUSIP No. 011576290 SCHEDULE 13D/A Page 9 of 11 Pages
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and based on the 27,586,184 Common Shares outstanding as of September 30,
2002 as set forth in the Company's Form 10-Q for the quarter then ended.
(b) The Investors collectively have beneficial ownership of 12,733,832 Common
Shares, assuming the full conversion of the Preference Shares into Common
Shares and the full exercise of the options to purchase Common Shares. Of
these Common Shares, 11,614,755 Common Shares are represented by 11,614,755
Preference Shares, which even if not converted into Common Shares would in
the aggregate be entitled to the voting power equivalent to 11,614,755
Common Shares. Each Investor exercises voting power and dispositive power
over its holdings of such shares through its respective general partner,
which, in turn, acts through its respective general partner.
(c) On December 16, 2002, the Company issued to the Investors an aggregate of
834,717 Preference Shares as a post-closing purchase price adjustment under
the Subscription Agreement. Pursuant to the terms of the Subscription
Agreement, the Company was required to issue to each Purchaser a number of
Preference Shares so as to reduce such Purchaser's per Preference Share
purchase price by $1.50 in the event that Company's existing Series B
Warrants were to become exercisable as a result of the closing price of the
Common Shares being at least $30.00 per share for 20 out of 30 consecutive
trading days. Except as otherwise described herein, during the last sixty
days there were no transactions effected by the Reporting Persons or by any
of the persons set forth on Schedule I hereto.
(d) Except as set forth in this Item 5, no person other than each respective
record owner referred to herein of the Common Shares and the Preference
Shares is known to have the right to receive or the power to direct the
receipt of dividends from, or the proceeds from the sale of, such Common
Shares or Preference Shares.
(e) Not applicable.
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CUSIP No. 011576290 SCHEDULE 13D/A Page 10 of 11 Pages
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SIGNATURES
After reasonable inquiry and to the best of our knowledge and
belief, the undersigned certify that the information set forth in this statement
is true, complete and correct.
Dated: December 18, 2002
HFCP IV (BERMUDA), L.P.
By: H&F Investors IV (Bermuda), L.P.,
its General Partner
By: H&F Corporate Investors IV (Bermuda) Ltd.,
its General Partner
By: /s/ Georgia Lee
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Name: Georgia Lee
Title: Vice President and Treasurer
H&F INTERNATIONAL PARTNERS IV-A (BERMUDA), L.P.
By: H&F Investors IV (Bermuda), L.P.,
its General Partner
By: H&F Corporate Investors IV (Bermuda) Ltd.,
its General Partner
By: /s/ Georgia Lee
-----------------------------
Name: Georgia Lee
Title: Vice President and Treasurer
H&F INTERNATIONAL PARTNERS IV-B (BERMUDA), L.P.
By: H&F Investors IV (Bermuda), L.P.,
its General Partner
By: H&F Corporate Investors IV (Bermuda) Ltd.,
its General Partner
By: /s/ Georgia Lee
-----------------------------
Name: Georgia Lee
Title: Vice President and Treasurer
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CUSIP No. 011576290 SCHEDULE 13D/A Page 11 of 11 Pages
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H&F EXECUTIVE FUND IV(BERMUDA), L.P.
By: H&F Investors IV (Bermuda), L.P.,
its General Partner
By: H&F Corporate Investors IV (Bermuda) Ltd.,
its General Partner
By: /s/ Georgia Lee
-----------------------------
Name: Georgia Lee
Title: Vice President and Treasurer
H&F INVESTORS IV (BERMUDA), L.P.
By: H&F Corporate Investors IV (Bermuda) Ltd.,
its General Partner
By: /s/ Georgia Lee
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Name: Georgia Lee
Title: Vice President and Treasurer
H&F CORPORATE INVESTORS IV (BERMUDA) LTD.
By: /s/ Georgia Lee
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Name: Georgia Lee
Title: Vice President and Treasurer