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)
Vertrue Incorporated
--------------------
(Name of Issuer)
Common Stock, par value $1.00 Per Share
---------------------------------------
(Title of Class of Securities)
92534N101
---------
(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)
June 1, 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 23 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. 92534N101 13D Page 2 of 23 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 104,481
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
104,481
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
104,481
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.1%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 92534N101 13D Page 3 of 23 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
RCG AMBROSE 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
Cayman Islands
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 417,919
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
417,919
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
417,919
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.3%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 92534N101 13D Page 4 of 23 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
ADMIRAL 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 104,481
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
104,481
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
104,481
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.1%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IA, OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 92534N101 13D Page 5 of 23 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 522,400
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
522,400
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
522,400
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.4%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IA, OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 92534N101 13D Page 6 of 23 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 522,400
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
522,400
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
522,400
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.4%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 92534N101 13D Page 7 of 23 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 522,400
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
-0-
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
522,400
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
522,400
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.4%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 92534N101 13D Page 8 of 23 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 522,400
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
-0-
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
522,400
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
522,400
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.4%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 92534N101 13D Page 9 of 23 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 522,400
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
-0-
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
522,400
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
522,400
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.4%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 92534N101 13D Page 10 of 23 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 522,400
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
-0-
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
522,400
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
522,400
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.4%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 92534N101 13D Page 11 of 23 Pages
---------------------- ----------------------
The following constitutes the Schedule 13D filed by the undersigned
(the "Schedule 13D").
Item 1. SECURITY AND ISSUER.
This statement relates to shares of the Common Stock, $0.01 par
value (the "Shares"), of Vertrue Incorporated (the "Issuer"). The address of the
principal executive offices of the Issuer is 20 Glover Avenue, Norwalk,
Connecticut 06850.
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) RCG Ambrose Master Fund, Ltd., a Cayman Islands exempted
company ("RCG Ambrose"), with respect to the Shares
directly and beneficially owned by it;
(iii) Admiral Advisors, LLC, a Delaware limited liability company
("Admiral Advisors"), who serves as the managing manager of
Parche;
(iv) Ramius Capital Group, LLC, a Delaware limited liability
company ("Ramius Capital"), who serves as the investment
manager of RCG Ambrose and as the sole member of Admiral
Advisors;
(v) C4S & Co., L.L.C., a Delaware limited liability company
("C4S"), who serves as managing member of Ramius Capital;
(vi) Peter A. Cohen ("Mr. Cohen"), who serves as one of the
managing members of C4S;
(vii) Morgan B. Stark ("Mr. Stark"), who serves as one of the
managing members of C4S;
(viii) Thomas W. Strauss ("Mr. Strauss"), who serves as one of the
managing members of C4S; and
(ix) Jeffrey M. Solomon ("Mr. Solomon"), who serves as one of
the managing members of C4S;
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 Agreement, as further described in Item 6.
Accordingly, the Reporting Persons are hereby filing a joint Schedule 13D.
---------------------- ----------------------
CUSIP No. 92534N101 13D Page 12 of 23 Pages
---------------------- ----------------------
(b) The address of the principal office of each of Parche, Admiral
Advisors, Ramius Capital, C4S, Mr. Cohen, Mr. Stark, Mr. Strauss and Mr. Solomon
is 666 Third Avenue, 26th Floor, New York, New York 10017.
The address of the principal office of RCG Ambrose 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 RCG
Ambrose and their principal occupations and business addresses are set forth on
Schedule B and incorporated by reference in this Item 2.
(c) The principal business of each of Parche and RCG Ambrose is
serving as a private investment fund. 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 Admiral Advisors is acting as the managing member of
Parche. 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.
(d) No Reporting Person has, during the last five years, been
convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors).
(e) No Reporting Person 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, and Solomon are citizens of the
United States of America.
Item 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
The Shares purchased by Parche and RCG Ambrose 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
522,400 Shares beneficially owned in the aggregate by the Reporting Persons
is approximately $25,162,069, including brokerage commissions.
Certain Shares reported in this Schedule 13D as owned by Parche were
acquired in private transactions with various transferors for which Ramius
Capital or an affiliate serves as the investment manager, the managing member or
the managing member of the investment manager. Ramius Capital is the sole member
of Admiral Advisors, which is the managing member of Parche. Parche acquired
from such transferors an aggregate of 104,481 Shares pre-market open on June 8,
2007 at a per Share price of $48.0000, equal to the last reported sales price on
the Nasdaq National Market on June 7, 2007, or an aggregate of $5,015,088. The
104,481 Shares transferred to Parche were initially acquired by the transferors
for an aggregate of $5,045,831 (excluding commissions and other execution
related costs). Such transferors had, within the 60 days prior
---------------------- ----------------------
CUSIP No. 92534N101 13D Page 13 of 23 Pages
---------------------- ----------------------
to the filing of the Schedule 13D, effected the following transactions in the
Shares: 04/12/07 purchased 5,000 Shares at a price per Share of $46.9513;
05/21/07 purchased 10,000 Shares at a price per Share of $48.2500; 05/23/07
purchased 51,000 Shares at a price per Share of $48.2494; and 06/01/07 purchased
8,480 Shares at a price per Share of $48.2500.
All purchases of Shares referenced above were funded by working
capital, which may, at any given time, include margin loans made by brokerage
firms in the ordinary course of business. The Reporting Persons do not believe
that the information contained in this paragraph is called for by the Items of
Schedule 13D and are disclosing it for supplemental informational purposes only.
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.
On March 22, 2007, the Issuer announced that it had entered into an
Agreement and Plan of Merger with Velo Holdings Inc. ("Velo") pursuant to which
Velo will acquire through a merger transaction (the "Acquisition") all of the
outstanding common stock of the Issuer (other than certain specified shares) for
$48.50 per Share in cash (the "Acquisition Price"). On May 1, 2007, the Issuer
filed a preliminary proxy statement on Schedule 14A with the Securities and
Exchange Commission, as subsequently amended on May 30, 2007, to solicit proxies
from shareholders of the Issuer for the approval of the Acquisition at a special
meeting of the Issuer's stockholders.
The Reporting Persons have reviewed the preliminary proxy materials
and other publicly available filings in connection with the Issuer. The
Reporting Persons believe that the Acquisition Price is too low and the
Reporting Persons currently intend to vote against the Acquisition at the
special meeting. The Reporting Persons believe that the terms of the Acquisition
do not reflect the intrinsic value of the Issuer and the Reporting Persons
reserve all rights with regard to its investment in the Issuer, including the
right to seek appraisal of the fair value of the Reporting Persons' investment
as determined by the Delaware Court of Chancery.
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 may engage in
discussions with management, the Board of Directors, other shareholders of the
Issuer and other relevant parties concerning the Acquisition and potentially
concerning other matters with respect to the Reporting Persons' investment in
the Shares, including, without limitation, the business, operations, governance,
---------------------- ----------------------
CUSIP No. 92534N101 13D Page 14 of 23 Pages
---------------------- ----------------------
management, strategy and future plans of the Issuer. Depending on various
factors, including, without limitation, the status of the Acquisition and the
apparent level of shareholder support therefor, the terms of any alternative
transactions that may be proposed, the Issuer's financial position and strategic
direction, the outcome of any discussions referenced above, actions taken by the
Board of Directors, price levels of the Shares, other investment opportunities
available to the Reporting Persons, conditions in the securities market 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, 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.
Item 5. INTEREST IN SECURITIES OF THE ISSUER.
The aggregate percentage of Shares reported owned by each person
named herein is based upon 9,724,735 Shares outstanding, as of May 4, 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 May 10, 2007.
A. Parche
(a) As of the date of this filing, Parche beneficially owns 104,481
Shares.
Percentage: 1.1% as of the date hereof.
(b) 1. Sole power to vote or direct vote: 104,481
2. Shared power to vote or direct vote: 0
3. Sole power to dispose or direct the disposition: 104,481
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. RCG Ambrose
(a) As of the date of this filing, RGC Ambrose beneficially owns 417,919
Shares.
Percentage: 4.3% as of the date hereof.
(b) 1. Sole power to vote or direct vote: 417,919
2. Shared power to vote or direct vote: 0
3. Sole power to dispose or direct the disposition: 417,919
4. Shared power to dispose or direct the disposition: 0
(c) The transactions in the Shares by RCG Ambrose in the past 60 days
are set forth in Schedule A and are incorporated by reference.
---------------------- ----------------------
CUSIP No. 92534N101 13D Page 15 of 23 Pages
---------------------- ----------------------
C. Admiral Advisors
(a) As of the date of this filing, as the managing member of Parche,
Admiral Advisors may be deemed the beneficial owner of 104,481
Shares owned by Parche.
Percentage: 1.1% as of the date hereof.
(b) 1. Sole power to vote or direct vote: 104,481
2. Shared power to vote or direct vote: 0
3. Sole power to dispose or direct the disposition: 104,481
4. Shared power to dispose or direct the disposition: 0
(c) Admiral 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 Parche, which were all in the open market, are set
forth in Schedule A and are incorporated by reference.
D. Ramius Capital
(a) As of the date of this filing, as the sole member of Admiral
Advisors, Ramius Capital may be deemed the beneficial owner of (i)
104,481 Shares owned by Parche and (ii) 417,919 Shares owned by RCG
Ambrose.
Percentage: 5.4% as of the date hereof.
(b) 1. Sole power to vote or direct vote: 522,400
2. Shared power to vote or direct vote: 0
3. Sole power to dispose or direct the disposition: 522,400
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 Parche and RCG Ambrose, which were all in the open
market, are set forth in Schedule A and are incorporated by
reference.
E. C4S
(a) As of the date of this filing, as the managing member of Ramius
Capital, C4S may be deemed the beneficial owner of (i) 104,481
Shares owned by Parche and (ii) 417,919 Shares owned by RCG Ambrose.
Percentage: 5.4% as of the date hereof.
(b) 1. Sole power to vote or direct vote: 522,400
2. Shared power to vote or direct vote: 0
3. Sole power to dispose or direct the disposition: 522,400
4. Shared power to dispose or direct the disposition: 0
---------------------- ----------------------
CUSIP No. 92534N101 13D Page 16 of 23 Pages
---------------------- ----------------------
(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 Parche and RCG Ambrose, which were all in the open market, are
set forth in Schedule A and are incorporated by reference.
F. 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. Solomon may be deemed
the beneficial owner of (i) 104,481 Shares owned by Parche and (ii)
417,919 Shares owned by RCG Ambrose.
Percentage: 5.4% as of the date hereof.
(b) 1. Sole power to vote or direct vote: 0
2. Shared power to vote or direct vote: 522,400
3. Sole power to dispose or direct the disposition: 0
4. Shared power to dispose or direct the disposition: 522,400
(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 Parche
and RCG Ambrose, 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 June 11, 2007, Parche, RCG Ambrose, Admiral Advisors, Ramius
Capital, C4S, Mr. Cohen, Mr. Solomon, Mr. Stark and Mr. Strauss (collectively,
the "Group") entered into a Joint Filing Agreement (the "Joint Filing
Agreement") in which the parties agreed to the joint filing on behalf of each of
them of statements on Schedule 13D with respect to the securities of the Issuer
to the extent required by applicable law. The Joint Filing Agreement is attached
as Exhibit 1 hereto and is incorporated herein by reference.
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.
---------------------- ----------------------
CUSIP No. 92534N101 13D Page 17 of 23 Pages
---------------------- ----------------------
Item 7. MATERIAL TO BE FILED AS EXHIBITS.
1. Joint Filing Agreement by and among Parche, RCG Ambrose, Admiral
Advisors, Ramius Capital, C4S, Mr. Cohen, Mr. Solomon, Mr. Stark
and Mr. Strauss, dated June 11, 2007.
2. Power of Attorney for Peter A. Cohen, Morgan B. Stark, Thomas W.
Strauss and Jeffrey M. Solomon, dated March 11, 2005.
---------------------- ----------------------
CUSIP No. 92534N101 13D Page 18 of 23 Pages
---------------------- ----------------------
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: June 11, 2007
PARCHE, LLC ADMIRAL ADVISORS, LLC
By: Admiral Advisors, LLC, its By: Ramius Capital Group, L.L.C.,
managing member its sole member
RCG AMBROSE MASTER FUND, LTD. RAMIUS CAPITAL GROUP, L.L.C.
By: C4S & Co., L.L.C.,
By: Ramius Capital Group, L.L.C., as managing member
its investment manager
C4S & CO., L.L.C.
By: /s/ Jeffrey M. Solomon
---------------------------
Name: Jeffrey M. Solomon
Title: Authorized Signatory
/s/ Jeffrey M. Solomon
----------------------
JEFFREY M. SOLOMON
Individually and as attorney-in-fact
for Peter A. Cohen, Morgan B. Stark
and Thomas W. Strauss
---------------------- ----------------------
CUSIP No. 92534N101 13D Page 19 of 23 Pages
---------------------- ----------------------
SCHEDULE A
TRANSACTIONS IN THE SHARES DURING THE PAST 60 DAYS
Shares of Common Stock Price Per Date of
Purchased / (Sold) Share($) Purchase / Sale
------------------ -------- ---------------
PARCHE, LLC
104,481* 48.0000 06/08/07
RCG AMBROSE MASTER FUND, LTD.
20,000 46.9513 04/12/07
40,000 48.2500 05/21/07
204,000 48.2494 05/23/07
33,920 48.2500 06/01/07
----------------
* Shares were acquired in private transactions with various transferors for
which Ramius Capital Group, LLC or an affiliate serves as the investment
manager, the managing member or the managing member of the investment manager.
---------------------- ----------------------
CUSIP No. 92534N101 13D Page 20 of 23 Pages
---------------------- ----------------------
SCHEDULE B
DIRECTORS AND OFFICERS OF RCG AMBROSE MASTER FUND, LTD.
Name and Position Principal Occupation Principal Business Address
----------------- -------------------- --------------------------
Mark Mitchell Partner of Ramius Capital 666 Third Avenue
Director Group, LLC 26th Floor
New York, New York 10017
Morgan B. Stark 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
---------------------- ----------------------
CUSIP No. 92534N101 13D Page 21 of 23 Pages
---------------------- ----------------------
EXHIBIT INDEX
Exhibit Page
------- ----
1. Joint Filing Agreement by and among Parche, RCG Ambrose,
Admiral Advisors, Ramius Capital, C4S, Mr. Cohen, Mr.
Solomon, Mr. Stark and Mr. Strauss, dated June 11, 2007. 22
2. Power of Attorney for Peter A. Cohen, Morgan B. Stark,
Thomas W. Strauss and Jeffrey M. Solomon, dated March 11,
2005. 23
---------------------- ----------------------
CUSIP No. 92534N101 13D Page 22 of 23 Pages
---------------------- ----------------------
JOINT FILING AGREEMENT
In accordance with Rule 13d-1(k)(1)(iii) under the Securities Exchange Act
of 1934, as amended, the persons named below agree to the joint filing on behalf
of each of them of a Statement on Schedule 13D dated June 11, 2007 (including
amendments thereto) with respect to the Common Stock of Vertrue Incorporated.
This Joint Filing Agreement shall be filed as an Exhibit to such Statement.
Dated: June 11, 2007
PARCHE, LLC ADMIRAL ADVISORS, LLC
By: Admiral Advisors, LLC, its By: Ramius Capital Group, L.L.C.,
managing member its sole member
RCG AMBROSE MASTER FUND, LTD. RAMIUS CAPITAL GROUP, L.L.C.
By: C4S & Co., L.L.C.,
By: Ramius Capital Group, L.L.C., as managing member
its investment manager
C4S & CO., L.L.C.
By: /s/ Jeffrey M. Solomon
---------------------------
Name: Jeffrey M. Solomon
Title: Authorized Signatory
/s/ Jeffrey M. Solomon
----------------------
JEFFREY M. SOLOMON
Individually and as attorney-in-fact
for Peter A. Cohen, Morgan B. Stark
and Thomas W. Strauss
---------------------- ----------------------
CUSIP No. 92534N101 13D Page 23 of 23 Pages
---------------------- ----------------------
POWER OF ATTORNEY
The undersigned hereby appoints Peter A. Cohen, Morgan B. Stark, Thomas W.
Strauss and Jeffrey M. Solomon, or any of them, his true and lawful attorney-in
fact and agent to execute and file with the Securities and Exchange Commission
any Schedule 13D, Schedule 13G, any amendments thereto and any related
documentation which may be required to be filed in his individual capacity as a
result of the undersigned's beneficial ownership of, or participation in a group
with respect to, securities directly or indirectly beneficially owned by Ramius
Capital Group, LLC or any of its affiliates, and granting unto said
attorney-in-fact and agent full power and authority to do and perform each and
every act and thing which he might or could do in person, hereby ratifying and
confirming all that said attorney-in-fact and agent may lawfully do or cause to
be done by virtue hereof. The authority of Peter A. Cohen, Morgan B. Stark,
Thomas W. Strauss and Jeffrey M. Solomon, or any of them, under this Power of
Attorney shall continue with respect to the undersigned until the undersigned is
no longer required to file Schedule 13Ds or Schedule 13Gs unless revoked earlier
in writing.
Date: March 11, 2005
/s/ Peter A. Cohen
-----------------------------------------
Peter A. Cohen
/s/ Morgan B. Stark
-----------------------------------------
Morgan B. Stark
/s/ Jeffrey M. Solomon
-----------------------------------------
Jeffrey M. Solomon
/s/ Thomas W. Strauss
-----------------------------------------
Thomas W. Strauss