sec document
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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. )(1)
A. Schulman, Inc.
-----------------
(Name of Issuer)
Common Stock, Par Value $1.00 Per Share
---------------------------------------
(Title of Class of Securities)
808194104
---------
(CUSIP Number)
STEVEN WOLOSKY, ESQ.
OLSHAN GRUNDMAN FROME ROSENZWEIG & WOLOSKY LLP
Park Avenue Tower
65 East 55th Street
New York, New York 10022
(212) 451-2300
--------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
October 10, 2007
----------------
(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), 13d-1(f) or 13d-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 for other
parties to whom copies are to be sent.
(Continued on following pages)
(Page 1 of 29 Pages)
----------------
(1) The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, SEE the
NOTES).
---------------------- ----------------------
CUSIP No. 808194104 13D Page 2 of 29 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
PARCHE, LLC
--------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 327,738
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
327,738
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
327,738
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.2%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 808194104 13D Page 3 of 29 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
STARBOARD VALUE AND OPPORTUNITY MASTER FUND LTD.
--------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 998,073
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
998,073
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
998,073
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.7%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 808194104 13D Page 4 of 29 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
STARBOARD VALUE & OPPORTUNITY FUND, LLC
--------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 736,984
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
736,984
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
736,984
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.7%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 808194104 13D Page 5 of 29 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
RCG STARBOARD ADVISORS, LLC
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 2,062,795
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
2,062,795
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
2,062,795
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.6%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IA, OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 808194104 13D Page 6 of 29 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
RAMIUS CAPITAL GROUP, L.L.C.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 2,062,795
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
2,062,795
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
2,062,795
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.6%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IA, OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 808194104 13D Page 7 of 29 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
C4S & CO., L.L.C.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 2,062,795
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
2,062,795
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
2,062,795
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.6%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 808194104 13D Page 8 of 29 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
PETER A. COHEN
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH 2,062,795
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
- 0 -
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,062,795
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
2,062,795
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.6%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 808194104 13D Page 9 of 29 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
MORGAN B. STARK
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH 2,062,795
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
- 0 -
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,062,795
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
2,062,795
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.6%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 808194104 13D Page 10 of 29 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
JEFFREY M. SOLOMON
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH 2,062,795
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
- 0 -
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,062,795
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
2,062,795
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.6%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 808194104 13D Page 11 of 29 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
THOMAS W. STRAUSS
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH 2,062,795
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
- 0 -
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,062,795
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
2,062,795
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.6%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 808194104 13D Page 12 of 29 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
MICHAEL CAPORALE, JR.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -**
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
- 0 -
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -**
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
- 0 -**
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%**
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
**SEE ITEM 5
---------------------- ----------------------
CUSIP No. 808194104 13D Page 13 of 29 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
LEE MEYER
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -**
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
- 0 -
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -**
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
- 0 -**
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%**
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
**SEE ITEM 5
---------------------- ----------------------
CUSIP No. 808194104 13D Page 14 of 29 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
MARK R. MITCHELL
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -**
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
- 0 -
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -**
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
- 0 -**
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%**
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
**SEE ITEM 5
---------------------- ----------------------
CUSIP No. 808194104 13D Page 15 of 29 Pages
---------------------- ----------------------
The following constitutes the Schedule 13D filed by the undersigned
(the "Schedule 13D"). The undersigned, except for Messrs. Caporale, Jr., Meyer
and Mitchell, were previously part of a Section 13(d) reporting group that
included Barington Investments, L.P., RJG Capital Partners, L.P., D.B. Zwirn
Special Opportunities Fund, L.P. and certain of their respective affiliates (the
"Barington Group"). The undersigned, except for Messrs. Caporale, Jr., Meyer and
Mitchell, ceased to be members of the Barington Group on March 30, 2007. For
ownership and other information relating to the undersigned prior to the filing
of this Schedule 13D, please make reference to the Schedule 13D filed by the
undersigned, except for Messrs. Caporale, Jr., Meyer and Mitchell, with the
Securities and Exchange Commission (the "SEC") on April 2, 2007 and the Schedule
13D filed by Barington Companies Equity Partners, L.P. with the SEC on June 6,
2005, as amended by that certain Amendment No. 1 filed on July 1, 2005, that
certain Amendment No. 2 filed on August 3, 2005, that certain Amendment No. 3
filed on August 25, 2005, that certain Amendment No. 4 filed on September 8,
2005, that certain Amendment No. 5 filed on September 13, 2005, that certain
Amendment No. 6 filed on September 28, 2005, that certain Amendment No. 7 filed
on October 11, 2005, that certain Amendment No. 8 filed on October 25, 2005,
that certain Amendment No. 9 filed on May 30, 2006, that certain Amendment No.
10 filed on June 1, 2006, that certain Amendment No. 11 filed on September 28,
2006, that certain Amendment No. 12 filed on October 10, 2006, that certain
Amendment No. 13 filed on October 12, 2006, that certain Amendment No. 14 filed
on October 26, 2006 and that certain Amendment No. 15 filed on November 6, 2006.
Item 1. SECURITY AND ISSUER.
This statement relates to shares of the Common Stock, par value
$1.00 per share (the "Shares"), of A. Schulman, Inc. (the "Issuer"). The
address of the principal executive offices of the Issuer is 3550 West Market
Street, Akron, Ohio 44333.
Item 2. IDENTITY AND BACKGROUND.
(a) This statement is filed by:
(i) Parche, LLC, a Delaware limited liability company
("Parche"), with respect to the Shares directly and
beneficially owned by it;
(ii) Starboard Value and Opportunity Master Fund Ltd., a Cayman
Islands exempted company ("Starboard"), with respect to the
Shares directly and beneficially owned by it;
(iii) Starboard Value & Opportunity Fund, LLC, a Delaware limited
liability company ("Starboard Value"), with respect to the
Shares directly and beneficially owned by it;
(iv) RCG Starboard Advisors, LLC, a Delaware limited liability
company ("RCG Starboard Advisors"), who serves as the
managing manager of Starboard Value and Parche and as the
investment manager of Starboard;
(v) Ramius Capital Group, L.L.C., a Delaware limited liability
company ("Ramius Capital"), who serves as the sole member of
RCG Starboard Advisors;
---------------------- ----------------------
CUSIP No. 808194104 13D Page 16 of 29 Pages
---------------------- ----------------------
(vi) C4S & Co., L.L.C., a Delaware limited liability company
("C4S"), who serves as managing member of Ramius Capital;
(vii) Peter A. Cohen ("Mr. Cohen"), who serves as one of the
managing members of C4S;
(viii) Morgan B. Stark ("Mr. Stark"), who serves as one of the
managing members of C4S;
(ix) Thomas W. Strauss ("Mr. Strauss"), who serves as one of the
managing members of C4S;
(x) Jeffrey M. Solomon ("Mr. Solomon"), who serves as one of the
managing members of C4S and is a nominee for the Board of
Directors of the Issuer;
(xi) Michael Caporale, Jr. ("Mr. Caporale, Jr."), a nominee for
the Board of Directors of the Issuer;
(xii) Lee Meyer ("Mr. Meyer"), a nominee for the Board of
Directors of the Issuer; and
(xiii) Mark Mitchell ("Mr. Mitchell"), a nominee for the Board of
Directors of the Issuer.
Each of the foregoing is referred to as a "Reporting Person" and
collectively as the "Reporting Persons." Each of the Reporting Persons is party
to that certain Joint Filing and Solicitation Agreement, as further described in
Item 6. Accordingly, the Reporting Persons are hereby filing a joint Schedule
13D.
(b) The address of the principal office of each of Parche, Starboard
Value, RCG Starboard Advisors, Ramius Capital, C4S, Mr. Cohen, Mr. Stark, Mr.
Strauss, Mr. Solomon and Mr. Mitchell is 666 Third Avenue, 26th Floor, New York,
New York 10017.
The address of the principal office of Starboard is c/o Citco Fund
Services (Cayman Islands) Limited, Corporate Center, West Bay Road, Grand
Cayman, Cayman Islands, British West Indies. The officers and directors of
Starboard and their principal occupations and business addresses are set forth
on Schedule B and incorporated by reference in this Item 2.
The address of the principal office of Mr. Caporale, Jr. is 3668
Shetland Trail, Richfield, Ohio 44286.
The address of the principal office of Mr. Meyer is 208 Shawna
Drive, Kearney, Missouri 64060.
---------------------- ----------------------
CUSIP No. 808194104 13D Page 17 of 29 Pages
---------------------- ----------------------
(c) The principal business of each of Starboard, Starboard Value and
Parche is serving as a private investment fund. Each of Starboard, Starboard
Value and Parche has been formed for the purpose of making equity investments
and, on occasion, taking an active role in the management of portfolio companies
in order to enhance shareholder value. The principal business of RCG Starboard
Advisors is acting as the managing member of Parche and Starboard Value and as
the investment manager of Starboard. Ramius Capital is engaged in money
management and investment advisory services for third parties and proprietary
accounts. C4S serves as managing member of Ramius Capital. Mr. Cohen, Mr.
Strauss, Mr. Stark and Mr. Solomon serve as co-managing members of C4S. Mr.
Mitchell is currently a partner of Ramius Capital.
The principal occupation of each of Messrs. Caporale, Jr. and
Meyer is serving as a business consultant.
(d) No Reporting Person, nor any person listed on Schedule B annexed
hereto, has, during the last five years, been convicted in a criminal proceeding
(excluding traffic violations or similar misdemeanors).
(e) No Reporting Person, nor any person listed on Schedule B annexed
hereto, has, during the last five years, been party to a civil proceeding of a
judicial or administrative body of competent jurisdiction and as a result of
such proceeding was or is subject to a judgment, decree or final order enjoining
future violations of, or prohibiting or mandating activities subject to, federal
or state securities laws or finding any violation with respect to such laws.
(f) Messrs. Cohen, Stark, Strauss, Solomon, Caporale, Jr., Meyer and
Mitchell are citizens of the United States of America.
Item 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
The Shares purchased by Starboard, Starboard Value and Parche were
purchased with the working capital of such entities (which may, at any given
time, include margin loans made by brokerage firms in the ordinary course of
business) in open market purchases. The aggregate purchase cost of the 2,062,795
Shares beneficially owned in the aggregate by the Reporting Persons is
approximately $41,961,454, excluding brokerage commissions.
Item 4. PURPOSE OF TRANSACTION.
The Reporting Persons originally purchased the Shares based on the
Reporting Persons' belief that the Shares, when purchased, were undervalued and
represented an attractive investment opportunity. Depending upon overall market
conditions, other investment opportunities available to the Reporting Persons,
and the availability of Shares at prices that would make the purchase or sale of
Shares desirable, the Reporting Persons may endeavor to increase or decrease
their position in the Issuer through, among other things, the purchase or sale
of Shares on the open market or in private transactions or otherwise, on such
terms and at such times as the Reporting Persons may deem advisable.
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CUSIP No. 808194104 13D Page 18 of 29 Pages
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The following is a chronology of events highlighting the Reporting
Persons' involvement with the Issuer in the time since it originally purchased
the Shares:
On June 5, 2005, certain of the Reporting Persons jointly filed with
the Securities and Exchange Commission (the "SEC") a Schedule 13D (the "Joint
Schedule 13D") with Barington Investments, L.P., certain of its affiliates and
certain other reporting persons (collectively, the "Barington Group Entities")
disclosing that such Reporting Persons formed a Section 13(d) reporting group
with the Barington Group Entities.
On October 11, 2005, certain of the Reporting Persons and the
Barington Group Entities filed an amendment to the Joint Schedule 13D with the
SEC disclosing that, on October 7, 2005, Barington Companies Equity Partners,
L.P. ("Barington Companies Equity") delivered a letter to the Issuer's Secretary
nominating Phillip D. Ashkettle, Thomas C. Bohrer and James A. Mitarotonda for
election to the Board of Directors at the Issuer's 2005 annual meeting of
shareholders (the "2005 Notice").
On October 21, 2005, certain of the Reporting Persons and the
Barington Group Entities entered into an agreement with the Issuer whereby
Barington Companies Equity agreed to withdraw its 2005 Notice and such Reporting
Persons and the Barington Group Entities agreed to abide by certain standstill
provisions until the Issuer's 2007 annual meeting of shareholders (the "2007
Annual Meeting"). In exchange, the Issuer agreed to, among other things, (i)
consummate a self-tender offer, (ii) increase the size of the Board of
Directors, (iii) appoint James A. Mitarotonda to the Board of Directors, (iv)
appoint an additional new director to the Board, (v) work together with
representatives of the Barington Group Entities to create a plan to improve
operations and (vi) implement a number of corporate governance improvements.
On October 10, 2006, certain of the Reporting Persons and the
Barington Group Entities filed an amendment to the Joint Schedule 13D with the
SEC disclosing that, on October 9, 2006, Barington Companies Equity delivered a
letter to the Secretary of the Issuer nominating Phillip D. Ashkettle, Charles
S. Ream, Thomas C. Bohrer and Michael A. McManus, Jr. for election to the Board
of Directors at the Issuer's 2006 annual meeting of shareholders (the "2006
Notice").
On October 25, 2006, certain of the Reporting Persons and the
Barington Group Entities entered into an agreement with the Issuer whereby
Barington Companies Equity withdrew its 2006 Notice and such Reporting Persons
and the Barington Group Entities agreed to abide by certain standstill
provisions until the Issuer's 2007 Annual Meeting, including a provision that
limits until the 2007 Annual Meeting the aggregate beneficial ownership of the
Shares to less than 20% of the Shares outstanding by the Barington Group
Entities, such of the Reporting Persons and any other stockholder of the Issuer
that, together with either the Barington Group Entities or the Reporting
Persons, may be deemed a "group," with respect to the Shares. In exchange, the
Issuer agreed to, among other things, (i) nominate James S. Marlen, Ernest J.
Novak, Jr., Howard R. Curd and Michael A. McManus, Jr. for election as directors
at the 2006 annual meeting, (ii) to establish a special committee to supervise
and oversee the creation and/or completion of a detailed operating budget and
business plan and (iii) to redeem certain rights issued to the Issuer's
stockholders under the rights agreement dated as of January 26, 2006, between
the Issuer and National City Bank, as Rights Agent (the "Rights Agreement"), and
cause the Rights Agreement to be terminated and of no further force or effect,
on or prior to the 2006 annual meeting
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CUSIP No. 808194104 13D Page 19 of 29 Pages
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On April 2, 2007, certain of the Reporting Persons filed with the
SEC a statement on Schedule 13D disclosing that, as of March 30, 2007, (i) such
Reporting Persons ceased to be members of a Section 13(d) reporting group with
the Barington Group Entities and would no longer file statements on the Joint
Schedule 13D and (ii) such Reporting Persons ceased to be the collective
beneficial owners of 5% or more of the Issuer's Shares and, as such, would no
longer be filing statements on Schedule 13D. Since March 30, 2007, such
Reporting Persons have not (i) entered into any agreements or understandings
with any of the Barington Group Entities regarding the voting or disposition of
securities of the Issuer or (ii) taken any other actions that would deem them to
be members of a "group" with any of the Barington Group Entities or any other
stockholder of the Issuer.
On July 5, 2007, Starboard Value delivered a letter to the Corporate
Secretary of the Issuer submitting, pursuant to Rule 14a-8 of the Securities
Exchange Act of 1934, as amended (the "1934 Act"), a proposal recommending that
the Board immediately engage the services of an investment banking firm to
evaluate alternatives that could enhance stockholder value, including but not
limited to a merger or outright sale of the Issuer. (the "14a-8 Proposal") A
copy of this letter is attached hereto as Exhibit 99.5 and is incorporated
herein by reference.
On July 31, 2007, the Issuer confirmed to Starboard Value that it
intended to include the 14a-8 Proposal in the Issuer's proxy statement for the
2007 Annual Meeting.
On October 3, 2007, Starboard delivered a letter to the Corporate
Secretary of the Issuer nominating Jeffrey Solomon, Mark Mitchell, Michael
Caporale, Jr. and Lee Meyer as Class III Nominees (the "Nominees") for election
to the Board at the 2007 Annual Meeting (the "Nomination Letter"). A copy of the
Nomination Letter is attached hereto as Exhibit 99.6 and is incorporated herein
by reference.
No Reporting Person has any present plan or proposal which would
relate to or result in any of the matters set forth in subparagraphs (a) - (j)
of Item 4 of Schedule 13D except as set forth herein or such as would occur upon
completion of any of the actions discussed above. The Reporting Persons intend
to review their investment in the Issuer on a continuing basis and engage in
discussions with management and the Board of Directors of the Issuer concerning
the business, operations and future plans of the Issuer. Depending on various
factors including, without limitation, the Issuer's financial position and
investment strategy, the price levels of the Shares, conditions in the
securities markets and general economic and industry conditions, the Reporting
Persons may in the future take such actions with respect to their investment in
the Issuer as they deem appropriate including, without limitation, seeking
additional Board representation, making proposals to the Issuer concerning
changes to the capitalization, ownership structure or operations of the Issuer,
purchasing additional Shares, selling some or all of their Shares, engaging in
short selling of or any hedging or similar transaction with respect to the
Shares or changing their intention with respect to any and all matters referred
to in Item 4.
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CUSIP No. 808194104 13D Page 20 of 29 Pages
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Item 5. INTEREST IN SECURITIES OF THE ISSUER.
The aggregate percentage of Shares reported owned by each person
named herein is based upon 27,257,619 Shares outstanding, as of June 22, 2007,
which is the total number of Shares outstanding as reported in the Issuer's
Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission
on June 29, 2007.
A. Parche
(a) As of the date of this filing, Parche beneficially owns 327,738
Shares.
Percentage: 1.2% as of the date hereof.
(b) 1. Sole power to vote or direct vote: 327,738
2. Shared power to vote or direct vote: 0
3. Sole power to dispose or direct the disposition: 327,738
4. Shared power to dispose or direct the disposition: 0
(c) The transactions in the Shares by Parche in the past 60 days are
set forth in Schedule A and are incorporated by reference.
B. Starboard
(a) As of the date of this filing, Starboard beneficially owns
998,073 Shares.
Percentage: 3.7% as of the date hereof.
(b) 1. Sole power to vote or direct vote: 998,073
2. Shared power to vote or direct vote: 0
3. Sole power to dispose or direct the disposition: 998,073
4. Shared power to dispose or direct the disposition: 0
(c) The transactions in the Shares by Starboard in the past 60 days
are set forth in Schedule A and are incorporated by reference.
C. Starboard Value
(a) As of the date of this filing, Starboard Value beneficially owns
736,984 Shares.
Percentage: 2.7% as of the date hereof.
(b) 1. Sole power to vote or direct vote: 736,984
2. Shared power to vote or direct vote: 0
3. Sole power to dispose or direct the disposition: 736,984
4. Shared power to dispose or direct the disposition: 0
(c) Starboard Value did not enter into any transactions in the Shares
in the past 60 days.
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CUSIP No. 808194104 13D Page 21 of 29 Pages
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D. RCG Starboard Advisors
(a) As of the date of this filing, as the managing member of each of
Parche and Starboard Value and the investment manager of
Starboard, RCG Starboard Advisors may be deemed the beneficial
owner of the (i) 998,073 Shares owned by Starboard, (ii) 327,738
Shares owned by Parche and (iii) 736,984 Shares owned by
Starboard Value.
Percentage: 7.6% as of the date hereof.
(b) 1. Sole power to vote or direct vote: 2,062,795
2. Shared power to vote or direct vote: 0
3. Sole power to dispose or direct the disposition: 2,062,795
4. Shared power to dispose or direct the disposition: 0
(c) RCG Starboard Advisors did not enter into any transactions in the
Shares in the past 60 days. The transactions in the Shares in
the past 60 days on behalf of Starboard and Parche, which were
all in the open market, are set forth in Schedule A and are
incorporated by reference.
E. Ramius Capital
(a) As of the date of this filing, as the sole member of RCG
Starboard Advisors, Ramius Capital may be deemed the beneficial
owner of the (i) 998,073 Shares owned by Starboard, (ii) 327,738
Shares owned by Parche and (iii) 736,984 Shares owned by
Starboard Value.
Percentage: 7.6% as of the date hereof.
(b) 1. Sole power to vote or direct vote: 2,062,795
2. Shared power to vote or direct vote: 0
3. Sole power to dispose or direct the disposition: 2,062,795
4. Shared power to dispose or direct the disposition: 0
(c) Ramius Capital did not enter into any transactions in the Shares
in the past 60 days. The transactions in the Shares in the past
60 days on behalf of Starboard and Parche, which were all in the
open market, are set forth in Schedule A and are incorporated by
reference.
F. C4S
(a) As of the date of this filing, as the managing member of Ramius
Capital, C4S may be deemed the beneficial owner of the (i)
998,073 Shares owned by Starboard, (ii) 327,738 Shares owned by
Parche and (iii) 736,984 Shares owned by Starboard Value.
Percentage: 7.6% as of the date hereof.
(b) 1. Sole power to vote or direct vote: 2,062,795
2. Shared power to vote or direct vote: 0
3. Sole power to dispose or direct the disposition: 2,062,795
4. Shared power to dispose or direct the disposition: 0
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CUSIP No. 808194104 13D Page 22 of 29 Pages
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(c) C4S did not enter into any transactions in the Shares in the past
60 days. The transactions in the Shares in the past 60 days on
behalf of Starboard and Parche, which were all in the open
market, are set forth in Schedule A and are incorporated by
reference.
G. Mr. Cohen, Mr. Stark, Mr. Strauss and Mr. Solomon
(a) As of the date of this filing, as the managing members of C4S,
each of Mr. Cohen, Mr. Stark, Mr. Strauss and Mr. may be deemed
the beneficial owner of the (i) 998,073 Shares owned by
Starboard, (ii) 327,738 Shares owned by Parche and (iii) 736,984
Shares owned by Starboard Value.
Percentage: 7.6% as of the date hereof.
(b) 1. Sole power to vote or direct vote: 0
2. Shared power to vote or direct vote: 2,062,795
3. Sole power to dispose or direct the disposition: 0
4. Shared power to dispose or direct the disposition: 2,062,795
(c) None of Mr. Cohen, Mr. Stark, Mr. Strauss or Mr. Solomon has
entered into any transactions in the Shares in the past 60 days.
The transactions in the Shares in the past 60 days on behalf of
Starboard and Parche, which were all in the open market, are set
forth in Schedule A and are incorporated by reference.
H. None of Messrs. Caporale, Jr., Meyer and Mitchell directly owns any
Shares nor have they entered into any transactions in the Shares during
the past 60 days. Each of Messrs. Caporale, Jr., Meyer and Mitchell,
as a member of a "group" for the purposes of Section 13(d)(3) of the
1934 Act, may be deemed to be a beneficial owner of the (i) 998,073
Shares owned by Starboard, (ii) 327,738 Shares owned by Parche and
(iii) 736,984 Shares owned by Starboard Value. Each of Messrs.
Caporale, Jr., Meyer and Mitchell disclaims beneficial ownership of
such Shares. The transactions in the Shares in the past 60 days on
behalf of Starboard and Parche, which were all in the open market, are
set forth in Schedule A and are incorporated by reference.
(d) No person other than the Reporting Persons is known to have the
right to receive, or the power to direct the receipt of dividends
from, or proceeds from the sale of, such shares of the Common
Stock.
(e) Not applicable.
Item 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
RESPECT TO SECURITIES OF THE ISSUER.
On October 22, 2007, the Reporting Persons entered into a Joint
Filing and Solicitation Agreement in which, among other things, (a) the parties
agreed to the joint filing on behalf of each of them of statements on Schedule
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CUSIP No. 808194104 13D Page 23 of 29 Pages
---------------------- ----------------------
13D with respect to the securities of the Issuer to the extent required under
applicable securities laws, (b) the parties agreed to form the group for the
purpose of soliciting proxies or written consents for the election of the
persons nominated by Starboard to the Issuer's Board at the 2007 Annual Meeting
and for the purpose of taking all other actions incidental to the foregoing and
(c) Starboard shall have the right to pre-approve all expenses incurred in
connection with the group's activities and agreed to pay directly all such
pre-approved expenses on a pro rata basis between Starboard, Starboard Value and
Parche based on the number of Shares in the aggregate held by each of Starboard,
Starboard Value and Parche on the date hereof. A copy of this agreement is
attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Pursuant to letter agreements, Starboard has agreed to indemnify
each of the Nominees against claims arising from the solicitation of proxies
from the Issuer's shareholders at the 2007 Annual Meeting and any related
transactions. A form of the letter agreement is attached hereto as Exhibit 99.3
and is incorporated herein by reference.
RCG Starboard Advisors and each of Messrs. Meyer and Carporale, Jr.
have entered into compensation letter agreements (the "Compensation Letter
Agreements") regarding compensation to be paid to them for their agreement to be
named and to serve as a Nominee and for their services as a director of the
Issuer, if elected. Pursuant to the terms of the Compensation Letter Agreements,
Messrs. Meyer and Carporale, Jr. will receive $5,000 in cash from RCG Starboard
Advisors as a result of the submission by Starboard of its nomination of the
Nominees. Upon the Reporting Persons' filing of a definitive proxy statement
with the SEC relating to a solicitation of proxies in favor of each nominee's
election as a director at the Annual Meeting, RCG Starboard Advisors has agreed
to allow Messrs. Meyer and Carporale, Jr. to receive a profit participation with
respect to the sale by RCG Starboard Advisors of the last $20,000 worth of
Shares (the "Participation Shares") beneficially owned by RCG Starboard Advisors
or one of its affiliates to a third party unaffiliated with any member of the
Reporting Persons. The number of Participation Shares shall be determined by
dividing $20,000 by the closing price of the Issuer's common stock on the date
of the definitive proxy filing. Messrs. Meyer and Carporale, Jr. will receive
cash payments equal to the amount, if any, by which the proceeds received by RCG
Starboard Advisors from the sale of the Participation Shares exceeds $20,000 in
the aggregate. A form of the Compensation Letter Agreement is attached hereto as
Exhibit 99.4 and is incorporated herein by reference.
Starboard, Starboard Value and Parche have had an arrangement with
Barington Capital Group, L.P. ("Barington Capital"), whereby Barington Capital
or one or more of its affiliates receives a fee with respect to certain profits
Starboard, Starboard Value and Parche may derive from their investment in the
Shares. Starboard, Starboard Value and Parche have had and continue to have sole
voting and dispositive power with respect to all Shares covered under this
arrangement.
Other than as described herein, there are no contracts,
arrangements, understandings or relationships among the Reporting Persons, or
between the Reporting Persons and any other person, with respect to the
securities of the Issuer.
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CUSIP No. 808194104 13D Page 24 of 29 Pages
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Item 7. MATERIAL TO BE FILED AS EXHIBITS.
Exhibit 99.1 Joint Filing and Solicitation Agreement by and
among Starboard Value and Opportunity Master Fund
Ltd., Starboard Value & Opportunity Fund, LLC,
Parche, LLC, RCG Starboard Advisors, LLC, Ramius
Capital Group, L.L.C., C4S & Co., L.L.C., Peter A.
Cohen, Morgan B. Stark, Thomas W. Strauss, Jeffrey
M. Solomon, Michael Caporale, Jr., Lee Meyer and
Mark Mitchell, dated October 22, 2007.
Exhibit 99.2 Power of Attorney for Peter A. Cohen, Morgan B.
Stark, Thomas W. Strauss and Jeffrey M. Solomon,
dated August 16, 2007.
Exhibit 99.3 Form of Indemnification Letter Agreement.
Exhibit 99.4 Form of Compensation Letter Agreement.
Exhibit 99.5 Letter from Starboard Value & Opportunity Fund,
LLC to A. Schulman, Inc., dated July 5, 2007,
submitting a 14a-8 proposal for consideration at
the 2007 Annual Meeting.
Exhibit 99.6 Nomination Letter from Starboard Value and
Opportunity Master Fund Ltd. to A. Schulman, Inc.,
dated October 3, 2007.
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CUSIP No. 808194104 13D Page 25 of 29 Pages
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SIGNATURES
----------
After reasonable inquiry and to the best of his knowledge and
belief, each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Dated: October 22, 2007
PARCHE, LLC RCG STARBOARD ADVISORS, LLC
By: Ramius Capital Group, L.L.C.,
STARBOARD VALUE & OPPORTUNITY its sole member
FUND, LLC
By: RCG Starboard Advisors, LLC, RAMIUS CAPITAL GROUP, L.L.C.
their managing member By: C4S & Co., L.L.C.,
as managing member
STARBOARD VALUE AND OPPORTUNITY
MASTER FUND LTD. C4S & CO., L.L.C.
By: RCG Starboard Advisors, LLC,
its investment manager
By: /s/ Jeffrey M. Solomon
-------------------------
Name: Jeffrey M. Solomon
Title: Authorized Signatory
/s/ Jeffrey M. Solomon /s/ Mark Mitchell
------------------------- -------------------------
JEFFREY M. SOLOMON MARK MITCHELL
Individually and as attorney-in-fact
for Peter A. Cohen, Morgan B. Stark
and Thomas W. Strauss
/s/ Lee Meyer /s/ Michael Caporale, Jr.
------------------------- -------------------------
LEE MEYER MICHAEL CAPORALE, JR.
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CUSIP No. 808194104 13D Page 26 of 29 Pages
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SCHEDULE A
----------
Transactions in the Shares During the Past 60 Days
--------------------------------------------------
Shares of Common Stock Price Per Date of
Purchased Share($) Purchase
--------- -------- --------
PARCHE, LLC
-----------
960 20.4494 08/28/07
3,312 20.9393 08/29/07
6,128 21.3533 08/30/07
2,880 21.4671 08/31/07
1,120 21.6181 09/04/07
2,400 21.2534 09/05/07
2,400 21.3691 09/06/07
5,120 19.4678 09/14/07
4,480 19.5483 09/17/07
1,600 19.8122 09/18/07
11,634 20.5071 10/10/07
3,618 20.8627 10/11/07
38,080 20.6000 10/12/07
7,232 20.6670 10/12/07
2,195 20.7981 10/15/07
10,621 20.6334 10/15/07
9,648 21.0207 10/16/07
5,328 21.0000 10/16/07
3,715 21.0283 10/16/07
9,920 21.1000 10/17/07
6,300 21.0050 10/17/07
7,232 20.9549 10/17/07
STARBOARD VALUE AND OPPORTUNITY MASTER FUND LTD.
------------------------------------------------
5,040 20.4494 08/28/07
17,388 20.9393 08/29/07
32,172 21.3533 08/30/07
15,120 21.4671 08/31/07
5,880 21.6181 09/04/07
12,600 21.2534 09/05/07
12,600 21.3691 09/06/07
26,880 19.4678 09/14/07
23,520 19.5483 09/17/07
8,400 19.8122 09/18/07
61,079 20.5071 10/10/07
18,994 20.8627 10/11/07
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CUSIP No. 808194104 13D Page 27 of 29 Pages
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199,920 20.6000 10/12/07
37,968 20.6670 10/12/07
11,523 20.7981 10/15/07
55,761 20.6334 10/15/07
50,652 21.0207 10/16/07
27,973 21.0000 10/16/07
19,501 21.0283 10/16/07
52,080 21.1000 10/17/07
38,700 21.0050 10/17/07
37,971 20.9549 10/17/07
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CUSIP No. 808194104 13D Page 28 of 29 Pages
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SCHEDULE B
----------
DIRECTORS AND OFFICERS OF STARBOARD VALUE AND OPPORTUNITY MASTER FUND LTD.
Name and Position Principal Occupation Principal Business Address
----------------- -------------------- --------------------------
Mark Mitchell Partner of Ramius Capital 666 Third Avenue
Director Group, L.L.C. 26th Floor
New York, New York 10017
Jeffrey M. Solomon Managing Member of C4S & 666 Third Avenue
Director Co., L.L.C., which is the 26th Floor
Managing Member of Ramius New York, New York 10017
Capital Group, L.L.C.
CFS Company Ltd. Nominee Company registered c/o Citco Fund Services
Director with Cayman Islands (Cayman Islands) Limited
Monetary Authority and is Corporate Center
affiliated with West Bay Road
Administrator of the Fund Grand Cayman, Cayman
Islands
British West Indies
CSS Corporation Ltd. Affiliate of the c/o Citco Fund Services
Secretary Administrator of the Fund (Cayman Islands) Limited
Corporate Center
West Bay Road
Grand Cayman, Cayman
Islands
British West Indies
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CUSIP No. 808194104 13D Page 29 of 29 Pages
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EXHIBIT INDEX
-------------
Exhibit Exhibit Number
------- --------------
Joint Filing and Solicitation Agreement by and 99.1
among Starboard Value and Opportunity Master Fund
Ltd., Starboard Value & Opportunity Fund, LLC,
Parche, LLC, RCG Starboard Advisors, LLC, Ramius
Capital Group, L.L.C., C4S & Co., L.L.C., Peter A.
Cohen, Morgan B. Stark, Thomas W. Strauss, Jeffrey
M. Solomon, Michael Caporale, Jr., Lee Meyer and
Mark Mitchell, dated October 22, 2007.
Power of Attorney for Peter A. Cohen, Morgan B. 99.2
Stark, Thomas W. Strauss and Jeffrey M. Solomon,
dated August 16, 2007.
Form of Indemnification Letter Agreement. 99.3
Form of Compensation Letter Agreement. 99.4
Letter from Starboard Value & Opportunity Fund, 99.5
LLC to A. Schulman, Inc., dated July 5, 2007,
submitting a 14a-8 proposal for consideration at
the 2007 Annual Meeting.
Nomination Letter from Starboard Value and 99.6
Opportunity Master Fund Ltd. to A. Schulman, Inc.,
dated October 3, 2007.