UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
(Amendment No. 4)
Under the Securities Exchange Act of 1934
PRG-SCHULTZ INTERNATIONAL, INC.
------------------------------------------
(Name of Issuer)
COMMON STOCK
-------------------------------------
(Title of Class of Securities)
69357C107
---------
(CUSIP Number)
Murray A. Indick
Blum Capital Partners, L.P.
909 Montgomery Street, Suite 400
San Francisco, CA 94133
(415) 434-1111
--------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
June 13, 2002
-----------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition which is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(b)(3) or (4), check the following
box [ ].
*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 ("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).
Page 1 of 12
CUSIP NO. 69357C107 SCHEDULE 13D Page 2 of 12
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1. NAME OF REPORTING PERSON BLUM CAPITAL PARTNERS, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 94-3205364
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
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3. SEC USE ONLY
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4. SOURCE OF FUNDS* See Item 3
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5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
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6. CITIZENSHIP OR PLACE OF ORGANIZATION California
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7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER 9,851,903**
BENEFICIALLY
OWNED BY EACH -----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 9,851,903**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 9,851,903**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 14.3%**
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14. TYPE OF REPORTING PERSON PN, IA
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** See Item 5
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 69357C107 SCHEDULE 13D Page 3 of 12
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1. NAME OF REPORTING PERSON RICHARD C. BLUM & ASSOCIATES, INC.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 94-2967812
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
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3. SEC USE ONLY
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4. SOURCE OF FUNDS* See Item 3
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5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
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6. CITIZENSHIP OR PLACE OF ORGANIZATION California
------------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER 9,851,903**
BENEFICIALLY
OWNED BY EACH -----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 9,851,903**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 9,851,903**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 14.3%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON CO
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** See Item 5
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 69357C107 SCHEDULE 13D Page 4 of 12
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1. NAME OF REPORTING PERSON BLUM STRATEGIC GP, L.L.C.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 94-3303831
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
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3. SEC USE ONLY
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4. SOURCE OF FUNDS* See Item 3
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5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
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6. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware
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7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER 9,851,903**
BENEFICIALLY
OWNED BY EACH -----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 9,851,903**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 9,851,903**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 14.3%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON OO (Limited Liability Company)
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** See Item 5
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 69357C107 SCHEDULE 13D Page 5 of 12
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1. NAME OF REPORTING PERSON BLUM STRATEGIC PARTNERS II, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 94-3395151
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
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3. SEC USE ONLY
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4. SOURCE OF FUNDS* See Item 3
------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
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6. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware
------------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER 9,851,903**
BENEFICIALLY
OWNED BY EACH -----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 9,851,903**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 9,851,903**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 14.3%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON PN
------------------------------------------------------------------------------
** See Item 5
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 69357C107 SCHEDULE 13D Page 6 of 12
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1. NAME OF REPORTING PERSON BLUM STRATEGIC GP II, L.L.C.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 94-3395150
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
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3. SEC USE ONLY
------------------------------------------------------------------------------
4. SOURCE OF FUNDS* See Item 3
------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware
------------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER 9,851,903**
BENEFICIALLY
OWNED BY EACH -----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 9,851,903**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 9,851,903**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 14.3%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON OO (Limited Liability Company)
------------------------------------------------------------------------------
** See Item 5
CUSIP NO. 69357C107 SCHEDULE 13D Page 7 of 12
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1. NAME OF REPORTING PERSON RICHARD C. BLUM
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
------------------------------------------------------------------------------
3. SEC USE ONLY
------------------------------------------------------------------------------
4. SOURCE OF FUNDS* See Item 3
------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
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6. CITIZENSHIP OR PLACE OF ORGANIZATION U.S.A.
------------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER 9,851,903**
BENEFICIALLY
OWNED BY EACH -----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 9,851,903**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 9,851,903**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 14.3%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON IN
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** See Item 5
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 69357C107 SCHEDULE 13D Page 8 of 12
Item 1. Security and Issuer
----------------------------
This Amendment No. 4 amends the Statement on Schedule 13D (the "Schedule 13D")
filed with the Securities and Exchange Commission (the "Commission") on March
1, 2002 by Blum Capital Partners, L.P., a California limited partnership,
("Blum L.P."); Richard C. Blum & Associates, Inc., a California corporation
("RCBA Inc."); Blum Strategic GP, L.L.C., a Delaware limited liability company
("Blum GP"); Blum Strategic GP II, L.L.C., a Delaware limited liability
company ("Blum GP II"); Blum Strategic Partners II, L.P., a Delaware limited
partnership ("Blum Strategic II"); and Richard C. Blum, the Chairman and a
substantial shareholder of RCBA Inc. and a managing member of Blum GP and Blum
GP II (collectively, the "Reporting Persons"). This amendment to the Schedule
13D relates to the purchase of shares of Common Stock of PRG-Schultz
International, Inc., a Georgia corporation (the "Issuer"). The principal
executive office and mailing address of the Issuer is 2300 Windy Ridge
Parkway, Suite 100 North, Atlanta, Georgia 30339-8426. The following
amendments to the Schedule 13D are hereby made. Unless otherwise defined
herein, all capitalized terms shall have the meanings ascribed to them in the
Schedule 13D.
Item 5. Interest in Securities of the Issuer
---------------------------------------------
Item 5 of the Schedule 13D is hereby amended as follows:
(a),(b) According to information furnished to the Reporting Persons by the
Issuer, there were 63,864,396 shares of Common Stock issued and outstanding as
of April 30, 2002. Based on such information, after taking into account the
transactions described in Item 5(c) below, the Reporting Persons report direct
holdings as follows:
(i) Blum L.P. and RCBA Inc. report holdings of 1,756,400 of the Common Stock
on behalf of the limited partnerships for which Blum L.P. serves as the
general partner and Blum L.P.'s investment advisory clients, which represents
2.8% of the outstanding shares of the Common Stock; (ii) Blum GP reports
holdings of 117,700 shares of the Common Stock on behalf of the limited
partnership for which it serves as the general partner, which represents 0.2%
of the outstanding shares of the Common Stock; (iii) Blum GP II reports
holdings of 2,691,043 shares of the Common Stock on behalf of the limited
partnership for which it serves as the general partner, which represents 4.2%
of the outstanding shares of the Common Stock; and (iv) Mr. Blum reports the
aggregate of these shares for a total of 4,565,143 shares of the Common Stock,
which represents 7.1% of the outstanding shares of the Common Stock.
In addition, because Blum L.P. has voting and investment power with respect to
118,800 shares that are legally owned by The Common Fund for the account of
its Multi-Strategy Equity Fund ("The Common Fund"), those shares are reported
as beneficially owned by Blum L.P. The Common Fund is principally engaged in
the business of managing investments for educational institutions. The
principal administrative office of The Common Fund is located at 15 Old
Danbury Road, Wilton, Connecticut 06897-0812. The Common Fund disclaims
membership in a group with any of the Reporting Persons, and disclaims
beneficial ownership of any shares held by the Reporting Persons.
CUSIP NO. 69357C107 SCHEDULE 13D Page 9 of 12
Voting and investment power concerning the above shares are held solely by
Blum L.P., Blum GP and Blum GP II. The Reporting Persons therefore may be
deemed to be members in a group, in which case each Reporting Person would be
deemed to have beneficial ownership of an aggregate of 4,683,943 shares of the
Common Stock, which is 7.3% of the outstanding Common Stock. As the sole
general partner of Blum L.P., RCBA Inc. is deemed the beneficial owner of the
securities over which Blum L.P. has voting and investment power. As Chairman,
director and a substantial shareholder of RCBA Inc., Richard C. Blum might be
deemed to be the beneficial owner of the securities beneficially owned by RCBA
Inc. Additionally, Mr. Blum may be deemed to be the beneficial owner of the
securities over which Blum GP and Blum GP II have voting and investment power.
In addition to the foregoing, in the event that the Reporting Persons
converted the Convertible Notes into Common Stock (see the Schedule 13D
Amendment Number 2, filed by the Reporting Persons on December 5, 2001), the
Reporting Persons would be deemed to have beneficial ownership of an aggregate
of 9,851,903 shares, and the Issuer would be deemed to have 69,032,356 shares
issued and outstanding. The Reporting Persons would thus be deemed to have
beneficial ownership of 14.3% of the Common Stock, as follows:
(i) BLUM L.P. and RCBA Inc. would be deemed to have beneficial
ownership of 4,986,375 shares, which represents 7.2% on an as converted basis;
(ii) Blum GP II would be deemed to have beneficial ownership of
4,629,028 shares, which represents 6.7% on an as converted basis;
(iii) Blum GP would be deemed to have beneficial ownership of 117,700
shares, which represents 0.2% on an as converted basis; and
(iv) Mr. Blum might be deemed to have beneficial ownership of 9,851,903
shares, which represents 14.3% on an as converted basis.
Although Mr. Blum is joining in this Schedule as a Reporting Person, the
filing of this Schedule shall not be construed as an admission that he, or any
of the other shareholders, directors or executive officers of RCBA Inc., or
any of the managing members and members of Blum GP and Blum GP II, is, for any
purpose, the beneficial owner of any of the securities that are beneficially
owned by RCBA Inc., Blum GP or Blum GP II, except to the extent of any
pecuniary interest therein.
(c) During the last sixty (60) days, the Reporting Persons purchased the
following shares of Common Stock in the open market:
Entity Trade Date Shares Price/Share
------ ---------- ------ ------------
Blum L.P.'s limited partnership 06/11/02 40,000 13.21670
and investment advisory client 06/12/02 28,500 13.22890
accounts (including The 06/13/02 44,000 13.14430
Common Fund) 06/14/02 117,500 13.20040
The limited partnership for 06/11/02 40,000 13.21670
which Blum GP II serves as 06/12/02 28,500 13.22890
the general partner 06/13/02 44,000 13.14430
06/14/02 117,500 13.20040
CUSIP NO. 69357C107 SCHEDULE 13D Page 10 of 12
(d) and (e) Not applicable.
Item 7. Material to be Filed as Exhibits
-----------------------------------------
Exhibit A Joint Filing Undertaking
CUSIP NO. 69357C107 SCHEDULE 13D Page 11 of 12
SIGNATURES
After reasonable inquiry and to the best of our knowledge and belief, the
undersigned certify that the information set forth in this statement is true,
complete and correct.
Dated: June 17, 2002
RICHARD C. BLUM & ASSOCIATES, INC. BLUM CAPITAL PARTNERS, L.P.
By Richard C. Blum & Associates, Inc.
its general partner
By /s/ Murray A. Indick By /s/ Murray A. Indick
------------------------------- -----------------------------------
Murray A. Indick Murray A. Indick
Partner, General Counsel Partner, General Counsel
and Secretary and Secretary
BLUM STRATEGIC GP, L.L.C. RICHARD C. BLUM
By /s/ Murray A. Indick /s/ Murray A. Indick
------------------------------- ---------------------------------------
Murray A. Indick, Member By Murray A. Indick, Attorney-in-Fact
BLUM STRATEGIC GP II, L.L.C. BLUM STRATEGIC PARTNERS II, L.P.
By: Blum Strategic GP II, L.L.C.,
its General Partner
By /s/ Murray A. Indick By /s/ Murray A. Indick
---------------------------- ----------------------------
Murray A. Indick, Member Murray A. Indick, Member
CUSIP NO. 69357C107 SCHEDULE 13D Page 12 of 12
Exhibit A
JOINT FILING UNDERTAKING
The undersigned, being duly authorized thereunto, hereby execute this
agreement as an exhibit to this Schedule 13D to evidence the agreement of the
below-named parties, in accordance with the rules promulgated pursuant to the
Securities Exchange Act of 1934, to file this Schedule jointly on behalf of
each such party.
Dated: June 17, 2002
RICHARD C. BLUM & ASSOCIATES, INC. BLUM CAPITAL PARTNERS, L.P.
By Richard C. Blum & Associates, Inc.
its general partner
By /s/ Murray A. Indick By /s/ Murray A. Indick
------------------------------- -----------------------------------
Murray A. Indick Murray A. Indick
Partner, General Counsel Partner, General Counsel
and Secretary and Secretary
BLUM STRATEGIC GP, L.L.C. RICHARD C. BLUM
By /s/ Murray A. Indick /s/ Murray A. Indick
------------------------------- ---------------------------------------
Murray A. Indick, Member By Murray A. Indick, Attorney-in-Fact
BLUM STRATEGIC GP II, L.L.C. BLUM STRATEGIC PARTNERS II, L.P.
By: Blum Strategic GP II, L.L.C.,
its General Partner
By /s/ Murray A. Indick By /s/ Murray A. Indick
---------------------------- -----------------------------
Murray A. Indick, Member Murray A. Indick, Member