UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 2)*
ART TECHNOLOGY GROUP, INC.
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(Name of Issuer)
Common Stock
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(Title of Class of Securities)
CUSIP NO. 458727 20 3
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(CUSIP Number)
James H. Dennedy Richard S. Rofe
Mitchell-Wright Technology Group, LLC Mitchell-Wright Technology Group, LLC
8060 Montgomery Road, Suite 205 185 Great Neck Road, Suite 460
Cincinnati, OH 45236 Great Neck, NY 11020
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(513) 792-5100 (516) 466-5258
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Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications
September 20, 2004
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(Date of Event Which Requires
Filing of This Statement)
If the person filing 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. 240.13d-1(e), 240.13d-1(f) or 240.13d-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.
*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 the disclosures provided in a prior cover page.
The information required in 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 ("Act") 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).
SCHEDULE 13D
CUSIP NO. 458727 20 3 PAGE 2 OF 23 PAGES
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(1) Names of Reporting Persons.
S.S. or Identification Nos. of above persons (entities only).
SSH Partners I, LLP
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(2) Check the Appropriate Box if a Member (a) /x/ of a Group (See
Instructions) (b) //
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(3) Sec Use Only
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(4) Source of Funds (see instructions) WC
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(5) Check if disclosure of legal proceedings is required pursuant to
Items 2(d) or 2(e).
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(6) Citizenship or Place of Organization
Delaware
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Number of Shares Beneficially Owned by Each (7) Sole Voting Power
Reporting Person with:
125,000
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(8) Shared Voting Power
0
---------------------------------
(9) Sole Dispositive Power
125,000
---------------------------------
(10) Shared Dispositive Power
0
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
125,000
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(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) //
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(13) Percent of Class Represented by Amount in Row (11)
0.2%
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(14) Type of Reporting Person (See Instructions)
PN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
SCHEDULE 13D
CUSIP NO. 458727 20 3 PAGE 3 OF 23 PAGES
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(1) Names of Reporting Persons.
S.S. or Identification Nos. of above persons (entities only).
Mitchell-Wright Technology Group, LLC 41-2142179
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(2) Check the Appropriate Box if a Member (a) /x/ of a Group (See
Instructions) (b) //
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(3) Sec Use Only
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(4) Source of Funds (see instructions) WC
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(5) Check if disclosure of legal proceedings is required pursuant to Items
2(d) or 2(e).
--------------------------------------------------------------------------------
(6) Citizenship or Place of Organization
Delaware
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Number of Shares Beneficially Owned by Each (7) Sole Voting Power
Reporting Person with:
125,000
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(8) Shared Voting Power
0
---------------------------------
(9) Sole Dispositive Power
125,000
---------------------------------
(10) Shared Dispositive Power
0
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
125,000
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(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) //
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(13) Percent of Class Represented by Amount in Row (11)
0.2%
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(14) Type of Reporting Person (See Instructions)
OO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
SCHEDULE 13D
CUSIP NO. 458727 20 3 PAGE 4 OF 23 PAGES
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(1) Names of Reporting Persons.
S.S. or Identification Nos. of above persons (entities only).
Mitchell-Wright, LLC
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(2) Check the Appropriate Box if a Member (a) /x/ of a Group (See
Instructions) (b) //
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(3) Sec Use Only
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(4) Source of Funds (see instructions) WC
--------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required pursuant to Items
2(d) or 2(e).
--------------------------------------------------------------------------------
(6) Citizenship or Place of Organization
Delaware
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Number of Shares Beneficially Owned by Each (7) Sole Voting Power
Reporting Person with:
125,000
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(8) Shared Voting Power
0
---------------------------------
(9) Sole Dispositive Power
125,000
---------------------------------
(10) Shared Dispositive Power
0
------------------------------------------------------------ -------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
125,000
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(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) //
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(13) Percent of Class Represented by Amount in Row (11)
0.2%
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(14) Type of Reporting Person (See Instructions)
OO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
SCHEDULE 13D
CUSIP NO. 458727 20 3 PAGE 5 OF 23 PAGES
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(1) Names of Reporting Persons.
S.S. or Identification Nos. of above persons (entities only).
James Dennedy
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(2) Check the Appropriate Box if a Member (a) /x/ of a Group (See
Instructions) (b) //
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(3) Sec Use Only
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(4) Source of Funds (see instructions) PF/AF
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(5) Check if disclosure of legal proceedings is required pursuant to Items
2(d) or 2(e).
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(6) Citizenship or Place of Organization
USA
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Number of Shares Beneficially Owned by Each (7) Sole Voting Power
Reporting Person with:
145,000
---------------------------------
(8) Shared Voting Power
0
---------------------------------
(9) Sole Dispositive Power
145,000
---------------------------------
(10) Shared Dispositive Power
0
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
145,000
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(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) //
--------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
0.2%
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(14) Type of Reporting Person (See Instructions)
IN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
SCHEDULE 13D
CUSIP NO. 458727 20 3 PAGE 6 OF 23 PAGES
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(1) Names of Reporting Persons.
S.S. or Identification Nos. of above persons (entities only).
Arcadia Partners, L.P.
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(2) Check the Appropriate Box if a Member (a) /x/ of a Group (See
Instructions) (b) //
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(3) Sec Use Only
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(4) Source of Funds (see instructions) WC
--------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required pursuant to Items
2(d) or 2(e).
--------------------------------------------------------------------------------
(6) Citizenship or Place of Organization
Delaware
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Number of Shares Beneficially Owned by Each (7) Sole Voting Power
Reporting Person with:
36,744
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(8) Shared Voting Power
0
---------------------------------
(9) Sole Dispositive Power
36,744
---------------------------------
(10) Shared Dispositive Power
0
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
36,744
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(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) //
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(13) Percent of Class Represented by Amount in Row (11)
0.0%
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(14) Type of Reporting Person (See Instructions)
PN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
SCHEDULE 13D
CUSIP NO. 458727 20 3 PAGE 7 OF 23 PAGES
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(1) Names of Reporting Persons.
S.S. or Identification Nos. of above persons (entities only).
Arcadia Capital Management, LLC
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(2) Check the Appropriate Box if a Member (a) /x/ of a Group (See
Instructions) (b) //
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(3) Sec Use Only
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(4) Source of Funds (see instructions) WC
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(5) Check if disclosure of legal proceedings is required pursuant to Items
2(d) or 2(e).
--------------------------------------------------------------------------------
(6) Citizenship or Place of Organization
Delaware
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Number of Shares Beneficially Owned by Each (7) Sole Voting Power
Reporting Person with:
36,744
---------------------------------
(8) Shared Voting Power
0
---------------------------------
(9) Sole Dispositive Power
36,744
---------------------------------
(10) Shared Dispositive Power
0
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
36,744
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(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) //
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(13) Percent of Class Represented by Amount in Row (11)
0.0%
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(14) Type of Reporting Person (See Instructions)
OO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
SCHEDULE 13D
CUSIP NO. 458727 20 3 PAGE 8 OF 23 PAGES
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(1) Names of Reporting Persons.
S.S. or Identification Nos. of above persons (entities only).
Richard Rofe
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(2) Check the Appropriate Box if a Member (a) /x/ of a Group (See
Instructions) (b) //
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(3) Sec Use Only
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(4) Source of Funds (see instructions) WC
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(5) Check if disclosure of legal proceedings is required pursuant to Items
2(d) or 2(e).
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(6) Citizenship or Place of Organization
USA
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Number of Shares Beneficially Owned by Each (7) Sole Voting Power
Reporting Person with:
172,244
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(8) Shared Voting Power
0
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(9) Sole Dispositive Power
172,244
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(10) Shared Dispositive Power
0
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
172,244
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(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) //
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(13) Percent of Class Represented by Amount in Row (11)
0.2%
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(14) Type of Reporting Person (See Instructions)
IN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
SCHEDULE 13D
CUSIP NO. 458727 20 3 PAGE 9 OF 23 PAGES
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(1) Names of Reporting Persons.
S.S. or Identification Nos. of above persons (entities only).
Parche, LLC 20-0870632
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(2) Check the Appropriate Box if a Member (a) /x/ of a Group (See
Instructions) (b) //
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(3) Sec Use Only
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(4) Source of Funds (see instructions) WC
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(5) Check if disclosure of legal proceedings is required pursuant to Items
2(d) or 2(e).
--------------------------------------------------------------------------------
(6) Citizenship or Place of Organization
Delaware
--------------------------------------------------------------------------------
Number of Shares Beneficially Owned by Each (7) Sole Voting Power
Reporting Person with:
0
---------------------------------
(8) Shared Voting Power
620,776
---------------------------------
(9) Sole Dispositive Power
---------------------------------
(10) Shared Dispositive Power
620,776
------------------------------------------------------------ -------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
620,776
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(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) //
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(13) Percent of Class Represented by Amount in Row (11)
0.8%
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(14) Type of Reporting Person (See Instructions)
OO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
SCHEDULE 13D
CUSIP NO. 458727 20 3 PAGE 10 OF 23 PAGES
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(1) Names of Reporting Persons.
S.S. or Identification Nos. of above persons (entities only).
Starboard Value & Opportunity Fund, LLC
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(2) Check the Appropriate Box if a Member (a) /x/ of a Group (See
Instructions) (b) //
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(3) Sec Use Only
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(4) Source of Funds (see instructions) WC
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(5) Check if disclosure of legal proceedings is required pursuant to Items
2(d) or 2(e).
--------------------------------------------------------------------------------
(6) Citizenship or Place of Organization
Delaware
--------------------------------------------------------------------------------
Number of Shares Beneficially Owned by Each (7) Sole Voting Power
Reporting Person with:
0
---------------------------------
(8) Shared Voting Power
3,259,080
---------------------------------
(9) Sole Dispositive Power
0
---------------------------------
(10) Shared Dispositive Power
3,259,080
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
3,259,080
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(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) //
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(13) Percent of Class Represented by Amount in Row (11)
4.4%
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(14) Type of Reporting Person (See Instructions)
OO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
SCHEDULE 13D
CUSIP NO. 458727 20 3 PAGE 11 OF 23 PAGES
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(1) Names of Reporting Persons.
S.S. or Identification Nos. of above persons (entities only).
Admiral Advisors, LLC
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(2) Check the Appropriate Box if a Member (a) /x/ of a Group (See
Instructions) (b) //
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(3) Sec Use Only
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(4) Source of Funds (see instructions) WC
--------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required pursuant to Items
2(d) or 2(e).
--------------------------------------------------------------------------------
(6) Citizenship or Place of Organization
Delaware
--------------------------------------------------------------------------------
Number of Shares Beneficially Owned by Each (7) Sole Voting Power
Reporting Person with:
0
---------------------------------
(8) Shared Voting Power
3,879,856
---------------------------------
(9) Sole Dispositive Power
0
---------------------------------
(10) Shared Dispositive Power
3,879,856
--------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
3,879,856
--------------------------------------------------------------------------------
(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) //
--------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
5.3%
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(14) Type of Reporting Person (See Instructions)
OO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
SCHEDULE 13D
CUSIP NO. 458727 20 3 PAGE 12 OF 23 PAGES
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(1) Names of Reporting Persons.
S.S. or Identification Nos. of above persons (entities only).
Ramius Capital Group, LLC
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(2) Check the Appropriate Box if a Member (a) /x/ of a Group (See
Instructions) (b) //
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(3) Sec Use Only
--------------------------------------------------------------------------------
(4) Source of Funds (see instructions) WC
--------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required pursuant to Items
2(d) or 2(e).
--------------------------------------------------------------------------------
(6) Citizenship or Place of Organization
Delaware
--------------------------------------------------------------------------------
Number of Shares Beneficially Owned by Each (7) Sole Voting Power
Reporting Person with:
0
---------------------------------
(8) Shared Voting Power
3,879,856
---------------------------------
(9) Sole Dispositive Power
0
---------------------------------
(10) Shared Dispositive Power
3,879,856
--------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
3,879,856
--------------------------------------------------------------------------------
(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) //
--------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
5.3%
--------------------------------------------------------------------------------
(14) Type of Reporting Person (See Instructions)
OO
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
SCHEDULE 13D
CUSIP NO. 458727 20 3 PAGE 13 OF 23 PAGES
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(1) Names of Reporting Persons.
S.S. or Identification Nos. of above persons (entities only).
C4S & Co., LLC
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(2) Check the Appropriate Box if a Member (a) /x/ of a Group (See
Instructions) (b) //
--------------------------------------------------------------------------------
(3) Sec Use Only
--------------------------------------------------------------------------------
(4) Source of Funds (see instructions) WC
--------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required pursuant to Items
2(d) or 2(e).
--------------------------------------------------------------------------------
(6) Citizenship or Place of Organization
Delaware
--------------------------------------------------------------------------------
Number of Shares Beneficially Owned by Each (7) Sole Voting Power
Reporting Person with:
0
---------------------------------
(8) Shared Voting Power
3,879,856
---------------------------------
(9) Sole Dispositive Power
0
---------------------------------
(10) Shared Dispositive Power
3,879,856
--------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
3,879,856
--------------------------------------------------------------------------------
(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) //
--------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
5.3%
--------------------------------------------------------------------------------
(14) Type of Reporting Person (See Instructions)
OO
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
SCHEDULE 13D
CUSIP NO. 458727 20 3 PAGE 14 OF 23 PAGES
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(1) Names of Reporting Persons.
S.S. or Identification Nos. of above persons (entities only).
Peter A. Cohen
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(2) Check the Appropriate Box if a Member (a) /x/ of a Group (See
Instructions) (b) //
--------------------------------------------------------------------------------
(3) Sec Use Only
--------------------------------------------------------------------------------
(4) Source of Funds (see instructions) WC
--------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required pursuant to Items
2(d) or 2(e).
--------------------------------------------------------------------------------
(6) Citizenship or Place of Organization
USA
--------------------------------------------------------------------------------
Number of Shares Beneficially Owned by Each (7) Sole Voting Power
Reporting Person with:
0
---------------------------------
(8) Shared Voting Power
3,879,856
---------------------------------
(9) Sole Dispositive Power
0
---------------------------------
(10) Shared Dispositive Power
3,879,856
--------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
3,879,856
--------------------------------------------------------------------------------
(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) //
--------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
5.3%
--------------------------------------------------------------------------------
(14) Type of Reporting Person (See Instructions)
IN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
SCHEDULE 13D
CUSIP NO. 458727 20 3 PAGE 15 OF 23 PAGES
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(1) Names of Reporting Persons.
S.S. or Identification Nos. of above persons (entities only).
Morgan B. Stark
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(2) Check the Appropriate Box if a Member (a) /x/ of a Group (See
Instructions) (b) //
--------------------------------------------------------------------------------
(3) Sec Use Only
--------------------------------------------------------------------------------
(4) Source of Funds (see instructions) WC
--------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required pursuant to Items
2(d) or 2(e).
--------------------------------------------------------------------------------
(6) Citizenship or Place of Organization
USA
--------------------------------------------------------------------------------
Number of Shares Beneficially Owned by Each (7) Sole Voting Power
Reporting Person with:
0
---------------------------------
(8) Shared Voting Power
3,879,856
---------------------------------
(9) Sole Dispositive Power
0
---------------------------------
(10) Shared Dispositive Power
3,879,856
--------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
3,879,856
--------------------------------------------------------------------------------
(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) //
--------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
5.3%
--------------------------------------------------------------------------------
(14) Type of Reporting Person (See Instructions)
IN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
SCHEDULE 13D
CUSIP NO. 458727 20 3 PAGE 16 OF 23 PAGES
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(1) Names of Reporting Persons.
S.S. or Identification Nos. of above persons (entities only).
Jeffrey M. Solomon
--------------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member (a) /x/ of a Group (See
Instructions) (b) //
--------------------------------------------------------------------------------
(3) Sec Use Only
--------------------------------------------------------------------------------
(4) Source of Funds (see instructions) WC
--------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required pursuant to Items
2(d) or 2(e).
--------------------------------------------------------------------------------
(6) Citizenship or Place of Organization
USA
--------------------------------------------------------------------------------
Number of Shares Beneficially Owned by Each (7) Sole Voting Power
Reporting Person with:
0
---------------------------------
(8) Shared Voting Power
3,879,856
---------------------------------
(9) Sole Dispositive Power
0
---------------------------------
(10) Shared Dispositive Power
3,879,856
------------------------------------------------------------ -------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
3,879,856
--------------------------------------------------------------------------------
(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) //
--------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
5.3%
--------------------------------------------------------------------------------
(14) Type of Reporting Person (See Instructions)
IN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
SCHEDULE 13D
CUSIP NO. 458727 20 3 PAGE 17 OF 23 PAGES
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(1) Names of Reporting Persons.
S.S. or Identification Nos. of above persons (entities only).
Thomas W. Strauss
--------------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member (a) /x/ of a Group (See
Instructions) (b) //
--------------------------------------------------------------------------------
(3) Sec Use Only
--------------------------------------------------------------------------------
(4) Source of Funds (see instructions) WC
--------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required pursuant to Items
2(d) or 2(e).
--------------------------------------------------------------------------------
(6) Citizenship or Place of Organization
USA
--------------------------------------------------------------------------------
Number of Shares Beneficially Owned by Each (7) Sole Voting Power
Reporting Person with:
0
---------------------------------
(8) Shared Voting Power
3,879,856
---------------------------------
(9) Sole Dispositive Power
0
---------------------------------
(10) Shared Dispositive Power
3,879,856
--------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
3,879,856
--------------------------------------------------------------------------------
(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) //
--------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
5.3%
--------------------------------------------------------------------------------
(14) Type of Reporting Person (See Instructions)
IN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
ITEM 1. SECURITY AND ISSUER
This Amendment No. 2 to Schedule 13D relates to shares of the Common Stock, par
value $0.01 per share ("Common Stock"), of Art Technology Group, Inc. (the
"Issuer" or the "Company") and is being filed on behalf of the undersigned to
amend the Schedule 13D which was originally filed on August 24, 2004, and
amended on September 10, 2004 (the "Schedule 13D"). Unless otherwise indicated,
all capitalized terms used herein but not defined herein shall have the same
meanings as set forth in the Schedule 13D.
ITEM 2. IDENTITY AND BACKGROUND
This Amendment No. 2 to Schedule 13D is filed by a group consisting of SSH
Partners I, LP, Mitchell-Wright Technology Group, LLC, Mitchell-Wright, LLC,
James Dennedy, Arcadia Partners, L.P., Arcadia Capital Management, LLC, Richard
Rofe, Parche, LLC, Starboard Value & Opportunity Fund, LLC, Admiral Advisors,
LLC, Ramius Capital Group, LLC, C4S & Co., LLC, Peter A. Cohen, Morgan B. Stark,
Jeffrey M. Solomon, and Thomas W. Strauss (collectively, the "Reporting
Persons").
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
None of the Reporting Persons has purchased additional shares of Common Stock
since the filing of the most recent amendment to the Schedule 13D.
ITEM 4. PURPOSE OF THE TRANSACTION
On September 20, 2004, Mitchell-Wright Technology Group, LLC ("MWTG") issued a
letter to the stockholders of the Company announcing its intention to vote
against the proposed merger of the Company with Primus Knowledge Solutions, Inc.
("PKSI"). A copy of the letter is attached as Exhibit 1. In addition, MWTG, SSH
Partners I, LP, James Dennedy, Arcadia Partners, L.P., Parche, LLC and Starboard
Value & Opportunity Fund, LLC currently intend to solicit proxies against the
proposed merger.
SHAREHOLDERS ARE ADVISED TO READ THE PROXY STATEMENT AND OTHER DOCUMENTS RELATED
TO SOLICITATION OF PROXIES BY MITCHELL WRIGHT TECHNOLOGY GROUP, LLC, SSH
PARTNERS I, LP, JAMES DENNEDY, ARCADIA PARTNERS, L.P., PARCHE, LLC AND STARBOARD
VALUE & OPPORTUNITY FUND, LLC FROM THE SHAREHOLDERS OF ART TECHNOLOGY GROUP,
INC. FOR USE AT ITS SPECIAL MEETING WHEN AND IF THEY BECOME AVAILABLE BECAUSE
THEY WILL CONTAIN IMPORTANT INFORMATION. WHEN AND IF COMPLETED, A DEFINITIVE
PROXY STATEMENT AND A FORM OF PROXY WILL BE MAILED TO SHAREHOLDERS OF ART
TECHNOLOGY GROUP, INC. AND WILL BE AVAILABLE AT NO CHARGE AT THE SECURITIES AND
EXCHANGE COMMISSION'S WEBSITE AT HTTP://WWW.SEC.GOV.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
(a), (b)
As of September 20, 2004, the aggregate number of shares of Common Stock to
which this Schedule 13D relates is 4,197,100 shares, representing 5.7% of the
73,828,622 shares of Common Stock reported by the Company to be issued and
outstanding as of June 30, 2004, in its Form 10-Q filed with the Securities and
Exchange Commission on August 9, 2004. The Reporting Persons beneficially own
those shares as follows:
As of the date hereof, Parche, LLC beneficially owns an aggregate of 620,776
shares of Common Stock, representing approximately 0.8% of the shares of Common
Stock presently outstanding. In addition, by virtue of the relationships
described under Item 2 of this Schedule 13D, each of Admiral Advisors, LLC,
Ramius Capital Group, LLC, C4S & Co., Peter A. Cohen, Morgan B. Stark, Jeffrey
M. Solomon and Thomas W. Strauss may be deemed to have an indirect beneficial
ownership of all the shares of Common Stock beneficially owned by Parche, LLC.
As of the date hereof, Starboard Value & Opportunity Fund, LLC beneficially owns
an aggregate of 3,259,080 shares of Common Stock, representing approximately
4.4% of the outstanding shares of Common Stock. In addition, by virtue of the
relationships described under Item 2 of this Schedule 13D, each of Admiral
Advisors, LLC, Ramius Capital Group, LLC, C4S & Co., LLC, Peter A. Cohen, Morgan
B. Stark, Jeffrey M. Solomon and Thomas W. Strauss may be deemed to have an
indirect beneficial ownership of all the shares of Common Stock beneficially
owned by Starboard Value & Opportunity Fund, LLC.
Each of Messrs. Cohen, Stark, Solomon and Strauss shares voting and dispositive
power with respect to both the 620,776 shares of Common Stock owned by Parche,
LLC and the 3,259,080 shares of Common Stock owned by Starboard Value &
Opportunity Fund, LLC by virtue of their status as joint managing members of C4S
& Co., LLC, the Managing Member of Ramius Capital Group, LLC, which in turn is
the Managing Member of Admiral Advisors, LLC, which is the Managing Member of
both Parche, LLC and Starboard Value & Opportunity Fund, LLC.
Messrs. Cohen, Stark, Solomon, and Strauss, C4S & Co., LLC, Ramius Capital
Group, LLC and Admiral Advisors, LLC each disclaim beneficial ownership of the
shares of the Issuer's Common Stock held of record by Parche, LLC and Starboard
Value & Opportunity Fund, LLC, and the filing of this Schedule 13D shall not be
construed as an admission that any such person is the beneficial owner of any
such securities.
(c) Not applicable
(d) Not applicable
(e) Not applicable
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER
MWTG, Parche, LLC, and Starboard Value and Opportunity Fund, LLC have an
agreement pursuant to which MWTG provides advice and services with respect to
the parties' investments in the Common Stock of the Issuer, among other matters.
Under such agreement, the parties agree to coordinate the acquisition and
disposition of Common Stock of the Issuer with MWTG and to cooperate with
respect to proxy votes and related matters (however, each of the parties to the
agreement retains the sole discretion over acquisitions and dispositions of, and
voting authority over, the shares of Common Stock that it holds). For such
services, MWTG receives an amount equal to a percentage of the profits realized
by such parties on their investment in the Issuer. The parties have also agreed
to share expenses incurred by the group.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
Exhibit 1: Letter to Stockholders of Art Technology Group, Inc.,
dated September 20, 2004.
--------------------------------------------------------------------------------
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
September 20, 2004 SSH Partners I, LP
By: Mitchell-Wright Technology Group, LLC,
its General Partner
/s/ James Dennedy
------------------------------------------
By: James Dennedy
Managing Member
September 20, 2004 Mitchell-Wright Technology Group, LLC
By: Mitchell-Wright, LLC, its Managing
Member
/s/ James Dennedy
------------------------------------------
By: James Dennedy
Managing Member
September 20, 2004 Mitchell-Wright, LLC
/s/ James Dennedy
------------------------------------------
By: James Dennedy
Managing Member
September 20, 2004 /s/ James Dennedy
------------------------------------------
James Dennedy
--------------------------------------------------------------------------------
September 20, 2004 Arcadia Partners, L.P.
By: Arcadia Capital Management, LLC, its
General Partner
/s/ Richard Rofe
-----------------------------------------
By: Richard Rofe
Member
September 20, 2004 Arcadia Capital Management, LLC
/s/ Richard Rofe
-----------------------------------------
By: Richard Rofe
Member
September 20, 2004 /s/ Richard Rofe
-----------------------------------------
Richard Rofe
September 20, 2004 Parche, LLC
By: Admiral Advisors, LLC, its managing
member
/s/ Jeffrey M. Solomon
-----------------------------------------
By: Jeffrey M. Solomon
Authorized Signatory
September 20, 2004 Starboard Value & Opportunity Fund, LLC
By: Admiral Advisors, LLC, its managing
member
/s/ Jeffrey M. Solomon
-----------------------------------------
By: Jeffrey M. Solomon
Authorized Signatory
September 20, 2004 Ramius Capital Group, LLC
By: C4S & Co., LLC, its Managing Member
/s/ Jeffrey M. Solomon
------------------------------------------
By:Jeffrey M. Solomon
Authorized Signatory
September 20, 2004 C4S & Co., LLC
/s/ Jeffrey M. Solomon
------------------------------------------
By:Jeffrey M. Solomon
Authorized Signatory
September 20, 2004 /s/ Peter A. Cohen
------------------------------------------
Peter A. Cohen
September 20, 2004 /s/ Morgan B. Stark
------------------------------------------
Morgan B. Stark
September 20, 2004 /s/ Jeffrey M. Solomon
------------------------------------------
Jeffrey M. Solomon
September 20, 2004 /s/ Thomas W. Strauss
------------------------------------------
Thomas W. Strauss
SCHEDULE I
This schedule sets forth information with respect to each purchase and sale of
Common Stock which was effectuated by a Reporting Person since the filing of the
Schedule 13D. All transactions were effectuated in the open market through a
broker.
Parche, LLC
-----------
Number of Shares
Date Purchased/(Sold) Price Per Share(1)
---- ---------------- ------------------
Starboard Value and Opportunity Fund, LLC
-----------------------------------------
Number of Shares
Date Purchased/(Sold) Price Per Share(1)
---- ---------------- ------------------
(1) Excludes commissions and other execution-related costs.
Exhibit 1
MITCHELL . WRIGHT
TECHNOLOGY GROUP
8060 MONTGOMERY ROAD, SUITE 205 185 GREAT NECK ROAD, SUITE 460
CINCINNATI, OH 45236 GREAT NECK, NY 11020
PHONE: +1 513.792.5100 PHONE: +1.516.466.5258
FAX: +1 413.375.3439 FAX: +1.516.466.7709
September 20, 2004
SHAREHOLDERS
Art Technology Group, Inc.
Re: Proposed Merger with Primus Knowledge Solutions, Inc.
---------------------------------------------------------
Dear Shareholders:
Art Technology Group ("ATG"), Inc. has had an exciting 10+ year history of
providing strong technology solutions to significant enterprise customers.
During those 10+ years, members of Mitchell Wright Technology Group, LLC
("MWTG") have worked with ATG's customers and worked in industry implementing
solutions on the ATG platform. Most recently, a group advised by MWTG has become
ATG's second largest shareholder. MWTG strongly believes in the Company's
greatest assets - its customer base, strong product innovations, high customer
loyalty, and a reasonably strong balance sheet. MWTG believes these assets
should be protected and profitably enhanced.
After detailed analysis, discussions with the Company's management and
directors, and much thought and deliberation, MWTG CANNOT support the proposed
merger of the Company with Primus Knowledge Solutions, Inc. ("PKSI") as it is
currently presented. We believe Management's plan to operate the combined
business fails to justify the significantly increased operational and financial
risk to shareholders that the merger presents.
We believe the actions recommended by Management in the S-4, filed September 8,
2004, threaten the Company's greatest assets, and therefore shareholder value,
in the following ways:
o Integration will distract management from running the business
profitably;
o Management's operating plan for the combined businesses fails to
strengthen the financial foundation of the business; and
o Proposed merger may significantly weaken the balance sheet.
ATG's management has not operated the core business profitably, and its Board
has not insisted that they do so. We encourage all shareholders to carefully
review the performance of the Company under current management. Under current
management, the Company has experienced (i) consistently unprofitable
operations, (ii) a steady decline in license and maintenance revenues, (iii)
significant cash balance erosion; and (iv) staffing levels and non-personnel
expenditures significantly out of line with the revenue of the business.
9/20/2004
Page 2 of 4
Management's published plan for the merged companies, endorsed by the Board,
does not give confidence that Management can integrate and operate a more
complex business profitably. The proposed plan for the merger does not get the
Company any closer to profitable operations and positive cash flow than proper
cost management would under independent operations.
The Company is at a critical financial juncture. The Company must either (i)
choose to operate profitably and seek strategic alternatives to independent
operations, or (ii) take significant financial risks in trying to become a
large, relevant enterprise software company. Management has asked shareholders
to accept tremendous risk by approving the merger agreement without providing an
action plan that would produce financial results to justify the additional
financial and operating risk and dilution. Management's financial basis for the
merger is that the acquired revenue ALONG WITH FORECASTS OF REVENUE GROWTH
support the $90-95M of planned expenses. However, Management has consistently
been unable to accurately forecast the Company's revenues. Management and the
board cannot expect shareholders to keep waiting until `next year' for
profitable operations. Approving the merger agreement under Management's
proposed plan could lead to significant financial stress on the Company.
Continued unprofitable operations, as presented in Management's plan for the
merged companies, will cause further balance sheet erosion. Weakening the
balance sheet increases the risk of achieving future revenue targets as
enterprise customers lose confidence in the viability of the business. This
vicious cycle will severely limit the Company's future strategic alternatives.
Management needs to focus on protecting the balance sheet. Management's plan, if
realized, places the Company in a precarious cash position as its NET CASH
balance may drop below $30 million, an amount which Management has stated is the
critical trough cash necessary to reliably generate revenue by assuring
customers of the Company's viability. Yet, after giving effect to the proposed
merger, the Company has stated that it will enter 2005 with a cash balance of
"something north of $30 million." We question the veracity of this statement.
Although Management may be able to post $30 million on the cash line, our
analysis indicates that the Company will need to borrow from its working capital
line to achieve this objective, thereby having less than $30 million in NET
CASH. In order for shareholders to have enough information before voting on the
merger agreement, we demand Management clarify their true intentions for the NET
CASH balance of the Company by providing shareholders with their projected cash
AND debt levels entering 2005.
We appreciate that the marriage of ATG's and PKSI's technology presents
attractive opportunities, but this will be of little value to shareholders if
the foundation of the underlying operating business remains weak. We encourage
shareholders, in considering the strength of the technology marriage,
particularly as discussed in analyst opinions, to also consider the capability
of the Company's management to
9/20/2004
Page 3 of 4
run an operationally sound business. If the combined Company cannot operate
profitably, then building the technology stack and revenue line with this
acquisition fails to add value, it destroys value.
MWTG remains greatly concerned with the level of shareholder representation
within Management and the Board of Directors. The lack of shareholder
representation has resulted in a disconnect between the owners of the company
(the shareholders) and those managing the Company (Management and the Board).
The Board and Management must be accountable to the shareholders of the
business. Therefore, MWTG believes a change in corporate governance is needed.
The Board and Management must understand that they are fiduciaries to the
shareholders. The shareholders must demand that the corporate governance of our
company be modified to bring the governance more in line with the state of the
market and take a more active role in demanding improved financial performance.
Based on Management's current operating plan and proposed plan for the combined
company, MWTG's recommends the following course of action to the Company and its
shareholders:
o Vote against the merger;
o Demand corporate governance changes to allow shareholders greater
ability to influence our company;
o Establish profitable operations before growing the Company with
acquisitions; and
o Pursue other strategic alternatives.
MWTG has been and remains committed to working with the Board and Management to
create shareholder value. While we are disappointed with the reticence of the
Board to exchange ideas, we remain eager to engage in a more active dialog with
the Board and Management to build value for all shareholders.
Thank you for taking the time to review our proposal and for your continued
support of ATG.
Very Respectfully,
/s/ James H. Dennedy
James H. Dennedy
Managing Partner
Mitchell-Wright Technology Group, LLC
cc: Paul Shorthose, Chairman
Bob Burke, Director & CEO
Phyllis Swersky, Director
David Elsbree, Director
Ilene Lang, Director
Mary Makela, Director
John Held, Director
SHAREHOLDERS ARE ADVISED TO READ THE PROXY STATEMENT AND OTHER DOCUMENTS RELATED
TO SOLICITATION OF PROXIES BY MITCHELL WRIGHT TECHNOLOGY GROUP, LLC AND RELATED
ENTITIES FROM THE SHAREHOLDERS OF ART TECHNOLOGY GROUP, INC. FOR USE AT ITS
SPECIAL MEETING WHEN AND IF THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION. WHEN AND IF COMPLETED, A DEFINITIVE PROXY STATEMENT AND A
FORM OF PROXY WILL BE MAILED TO SHAREHOLDERS OF ART TECHNOLOGY GROUP, INC. AND
WILL BE AVAILABLE AT NO CHARGE AT THE SECURITIES AND EXCHANGE COMMISSION'S
WEBSITE AT HTTP://WWW.SEC.GOV. INFORMATION RELATING TO THE POTENTIAL
PARTICIPANTS IN A POTENTIAL PROXY SOLICITATION IS CONTAINED IN THE SCHEDULE 13D
FILED BY MITCHELL WRIGHT TECHNOLOGY GROUP, LLC, PARCHE, LLC, STARBOARD VALUE &
OPPORTUNITY FUND, LLC AND CERTAIN OF THEIR AFFILIATES WITH THE SECURITIES AND
EXCHANGE COMMISSION ON AUGUST 24, 2004 WITH RESPECT TO ART TECHNOLOGY GROUP,
INC., AS AMENDED ON SEPTEMBER 10, 2004 AND SEPTEMBER 20, 2004. THAT SCHEDULE 13D
IS CURRENTLY AVAILABLE AT NO CHARGE ON THE SECURITIES AND EXCHANGE COMMISSION'S
WEBSITE.