SC 13D
1
was5209.txt
SC 13D
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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SCHEDULE 13D
(Rule 13d-101)
Under the Securities Exchange Act of 1934
(Amendment No. __)*
Vastera, Inc.
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(Name of Issuer)
Common Stock, Par Value $0.01 Per Share
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(Title of Class of Securities)
92239N109
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(CUSIP Number)
Anthony Horan, Esq.
JPMorgan Chase Bank, National Association
270 Park Ave.
35th Floor
New York, NY 10017
212-270-7122
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(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
Copy to:
Marcia Nirenstein, Esq.
Skadden, Arps, Slate, Meagher & Flom LLP
1440 New York Ave., N.W.
Washington, DC 20005
202-371-7000
January 6, 2005
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G
to report the acquisition that is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(e), Rule 13d-1(f) or Rule 13d-1(g),
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 (the "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 15 Pages
SCHEDULE 13D
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CUSIP No. 92239N109 Page 2 of 15 Pages
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
JPMorgan Chase Bank, National Association
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(See Instructions) (a) //
(b) //
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (See Instructions)
OO
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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
National Banking Association
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NUMBER OF 7 SOLE VOTING POWER
SHARES None
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BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 11,948,351 shares of common stock (1)
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EACH 9 SOLE DISPOSITIVE POWER
REPORTING None
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10 SHARED DISPOSITIVE POWER
PERSON
WITH None
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11,948,351 shares of common stock (1)
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12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES (See Instructions) //
(See Item 6)
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
28.3% (2)
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14 TYPE OF REPORTING PERSON (See Instructions)
BK
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(1) Represents the aggregate number of shares of the issuer's common stock held
by the stockholders listed on Schedule B of this Schedule 13D, each of whom
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entered into a voting agreement dated as of January 6, 2005 with JPMorgan Chase
Bank, National Association ("JPM") obligating the holder to vote such shares in
Page 2 of 15 Pages
favor of the proposed acquisition of the issuer by JPM and related matters, and
with respect to which such stockholders granted JPM a proxy granting JPM the
right to vote on each stockholder's behalf in favor of such matters. JPM
expressly disclaims beneficial ownership of any of the shares of the issuer's
common stock subject to the voting agreements and proxies.
(2) Based on 42,248,756 shares of the issuer's common stock outstanding as of
January 3, 2005, as represented by the issuer in the Agreement and Plan of
Merger discussed in Items 3 and 4 below.
Page 3 of 15 Pages
The information set forth in response to each separate Item shall be
deemed to be a response to all Items where such information is relevant.
Item 1. Security and Issuer.
The class of equity securities to which this statement relates is
common stock, par value $0.01, of Vastera, Inc., a Delaware corporation
("Vastera"). The principal executive offices of Vastera are located at 45025
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Aviation Drive, Suite 300, Dulles, VA 20166.
Item 2. Identity and Background.
(a) The name of the entity filing this statement is JPMorgan Chase Bank,
National Association, a national banking association ("JPM").
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(b) The address of JPM's principal office is 1111 Polaris Parkway, Columbus, OH
43240.
(c) JPM is a wholly-owned subsidiary of JPMorgan Chase & Co. ("JPMC"), a global
financial services firm, which expressly disclaims beneficial ownership of the
shares reported herein.
(d) and (e) Except as noted below, during the past five years, neither JPM nor
any other person named on Schedule A attached hereto, has been (i) convicted in
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a criminal proceeding (excluding traffic violations or similar misdemeanors) or
(ii) a 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
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.
The Securities & Exchange Commission ("SEC") alleged that during the
period of December 1997 to September 2001, JPMC aided and abetted Enron Corp.'s
violation of the antifraud provisions of the Federal Securities Laws, Section
10(b) of the Securities Exchange Act of 1934 and Exchange Act Rule 10b-5. The
complaint alleged that Enron Corp. manipulated its reported financial results
through a series of commodity derivatives transactions known as prepays which
were entered into with JPMC. On July 28, 2003, JPMC consented, without admitting
or denying the allegations of the complaint, to the entry by the United States
District Court for the Southern District of Texas of a final judgment: (1)
enjoining JPMC, its agents, servants, employees, attorneys, assigns and all
persons in active concert or participation with them who receive actual notice
of the final judgment by personal service or otherwise from violating, directly
or indirectly, Section 10(b) of the Exchange Act and Rule 10b-5 promulgated
thereunder; and (2) ordering JPMC to pay a total of $135,000,000: $65,000,000
representing disgorgement, prejudgment interest thereon in the amount of
$5,000,000, and a civil penalty of $65,000,000 pursuant to Section 21(d) of the
Exchange Act. No portion of the penalty was waived. JPMC made payment of
$135,000,000 on July 28, 2003.
(f) See Schedule A attached hereto.
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Page 4 of 15 Pages
Item 3. Source and Amount of Funds or Other Consideration.
Vastera entered into an Agreement and Plan of Merger, dated January 6, 2005, a
copy of which is attached hereto as Exhibit 1 (the "Merger Agreement") with JPM
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and a wholly-owned subsidiary of JPM ("JPM Merger Sub") that provides for the
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acquisition of Vastera by JPM by means of a merger of JPM Merger Sub with and
into Vastera. As a result of the merger, Vastera would become a wholly-owned
subsidiary of JPM. As an inducement for JPM to enter into the Merger Agreement
and in consideration thereof, certain Vastera stockholders identified on
Schedule B (collectively, the "Stockholders"), entered into separate voting
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agreements with JPM, dated as of January 6, 2005, copies of which are attached
hereto as Exhibit 2 and Exhibit 3 and more fully described in Item 4, whereby
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each Stockholder agreed to vote all of the shares of Vastera common stock
currently beneficially owned by such Stockholder or acquired by such Stockholder
after such date in favor of the merger and related matters. Each of these
Stockholders also granted JPM an irrevocable proxy granting JPM the right to
vote such shares in favor of such matters (the voting agreement and proxies
together are referred to herein as the "Voting Agreements"). JPM did not pay
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additional consideration to the Stockholders in exchange for the Voting
Agreements.
References to, and descriptions of, the merger, the Merger Agreement and the
Voting Agreements throughout this Schedule 13D are qualified in their entirety
by reference to the Merger Agreement included as Exhibit 1 to this Schedule 13D
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and the Voting Agreements included as Exhibit 2 and Exhibit 3 to this Schedule
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13D. These agreements are incorporated into this Schedule 13D where such
references and descriptions appear.
Item 4. Purpose of Transaction.
(a)-(b) As described in Item 3 above, this Schedule 13D relates to the proposed
acquisition of Vastera by JPM pursuant to the terms of the Merger Agreement. To
induce JPM to enter into the Merger Agreement, the Stockholders entered into the
Voting Agreements. The purpose of the Voting Agreements is to facilitate the
consummation of the merger.
The Merger Agreement provides that, at the effective time of the merger, each
outstanding share of Vastera common stock will be converted into the right to
receive $3.00 cash, without interest. In addition, each outstanding option to
purchase shares of Vastera common stock (whether vested or not) will be
cancelled in exchange for a payment to the option holder of a cash amount equal
to the excess, if any, of $3.00 over the exercise price of the option.
By executing the Voting Agreements, the Stockholders have (i) agreed to vote all
of the shares of Vastera common stock currently beneficially owned by them or
acquired prior to the expiration of the Voting Agreement, in favor of the
merger, adoption of the Merger Agreement and any other matter that could
reasonably be expected to facilitate the merger, and (ii) granted irrevocable
proxies to JPM granting JPM the right to vote such shares as specified in clause
(i). The Stockholders may vote such shares on all other matters submitted to
the Vastera stockholders for their approval.
Page 5 of 15 Pages
(c) Not applicable.
(d) It is anticipated that upon consummation of the merger, the directors of JPM
Merger Sub shall become the directors of Vastera (the surviving corporation in
the merger), until their respective successors are duly elected or appointed and
qualified.
(e) Other than as a result of the merger described in Item 3 and above in this
Item 4, not applicable.
(f) Not applicable.
(g) Upon consummation of the merger, the Certificate of Incorporation and Bylaws
of Vastera shall be amended and restated in their entirety according to the
terms of Section 1.5 of the Merger Agreement.
(h)-(i) If the Merger is consummated as planned, Vastera's common stock will
cease to be quoted on the Nasdaq Stock Market, Inc.'s National Market System and
will become eligible for termination of registration pursuant to Section
12(g)(4) of the Securities Exchange Act of 1934, as amended.
(j) Not applicable.
Item 5. Interest in Securities of the Issuer.
(a)-(b) As a result of the Voting Agreements, JPM may be deemed to be the
beneficial owner of 11,948,351 shares of Vastera common stock. This number of
shares represents approximately 28.3% of the issued and outstanding shares of
Vastera common stock based on the number of shares outstanding as of January 3,
2005 (as represented by Vastera in the Merger Agreement). JPM disclaims any
beneficial ownership of such shares, and nothing herein shall be deemed to be an
admission by JPM as to the beneficial ownership of such shares.
To JPM's knowledge, no shares of Vastera's common stock are beneficially owned
by any of the persons identified in Schedule A to this Schedule 13D.
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(b) JPM may be deemed to have shared voting power of the 11,948,351 shares of
Vastera common stock held by stockholders of Vastera who entered into the Voting
Agreements due to JPM's right under the Voting Agreements to direct the voting
of such shares with respect to the matters specified in the other matters, and
does not possess any other rights as a Vastera stockholder with respect to such
shares.
Information required by Item 2 (a)-(c) with respect to each stockholder of
Vastera that entered into a Voting Agreement with JPM is set forth on
Schedule B. To JPM's knowledge, none of the persons identified on Schedule B
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(i) has been convicted in a criminal proceeding (excluding traffic violations
Page 6 of 15 Pages
or similar misdemeanors) during the last five years, or (ii) was a party to a
civil proceeding or 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 during the last five years. To JPM's
knowledge, each of the individuals identified on Schedule B is a citizen of
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the United States.
(c) To JPM's knowledge, no transactions in Vastera's common stock have been
effected during the past sixty days by any person named pursuant to Item 2.
(d) To JPM's knowledge, no person other than the Stockholders identified on
Schedule B has the right to receive or the power to direct the receipt of
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dividends from, or the proceeds from the sale of, such shares.
(e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships With Respect to
Securities of the Issuer.
The terms of the Voting Agreements are described under Item 4(a)-(b) above. The
Voting Agreements also apply to any shares of Vastera common stock acquired by
the parties to such agreements after the date of the Voting Agreements.
Item 7. Material to be filed as Exhibits.
Exhibit 1 Agreement and Plan of Merger, dated January 6, 2005, by and among
JPMorgan Chase Bank, National Association, JPM Merger Sub Inc., and
Vastera, Inc. (incorporated by reference to Exhibit 10.1 to Vastera's
Form 8-K Current Report filed January 7, 2005).
Exhibit 2 Voting Agreement, dated January 6, 2005, by and among JPMorgan Chase
Bank, National Association, TCV II, V.O.F., Technology Crossover
Ventures II, L.P., TCV II(Q), L.P., TCV II Strategic Partners, L.P.,
Technology Crossover Ventures II, C.V., TCV IV, L.P. and TCV IV
Strategic Partners, L.P.
Exhibit 3 Voting Agreement, dated January 6, 2005, by and between JPMorgan
Chase Bank, National Association and Ford Motor Company.
Page 7 of 15 Pages
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.
Dated: January 18, 2005 JPMorgan Chase Bank, National Association
By: /s/Anthony Horan
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Name: Anthony Horan
Title: Secretary
Page 8 of 15 Pages
SCHEDULE A
Directors and Executive Committee of JPMorgan Chase Bank, National Association.
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Name, Position and Business Address (1) Present Principal
Citizenship Occupation and
Address of Employment
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Lawrence A. Bossidy 270 Park Avenue, Retired Chairman
Director 35th Floor Honeywell International
United States Citizen New York, NY 10017 Inc. (2)
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James S. Crown 270 Park Avenue, President
Director 35th Floor Henry Crown and Company
United States Citizen New York, NY 10017 (3)
2222 North LaSalle Street
Chicago, IL 60601
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James Dimon 270 Park Avenue, President & Chief Operating
Director 35th Floor Officer
United States Citizen New York, NY 10017 JPMorgan Chase & Co. (1)
270 Park Avenue, 35th Floor
New York, NY 10017
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William B. Harrison, Jr. 270 Park Avenue, Chairman & Chief
Director 35th Floor Executive Officer
United States Citizen New York, NY 10017 JPMorgan Chase & Co. (1)
270 Park Avenue, 35th Floor
New York, NY 10017
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Laban P. Jackson, Jr. 270 Park Avenue, Chairman & Chief
Director 35th Floor Executive Officer
United States Citizen New York, NY 10017 Clear Creek Properties, Inc.
(4)
2365 Harrodsburg Road #B230
Lexington, KY 40504
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Page 9 of 15 Pages
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Name, Position and Business Address (1) Present Principal
Citizenship Occupation and
Address of Employment
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David C. Novak 270 Park Avenue, Chairman & Chief
Director 35th Floor Executive Officer
United States Citizen New York, NY 10017 Yum! Brands, Inc. (5)
1441 Gardiner Lane
Louisville, KY 40213
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Lee R. Raymond 270 Park Avenue, Chairman & Chief
Director 35th Floor Executive Officer
United States Citizen New York, NY 10017 Exxon Mobil Corporation (6)
5959 Las Colinas Boulevard
Irving, TX 75039
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John R. Stafford 270 Park Avenue, Retired Chairman
Director 35th Floor Wyeth (7)
United States Citizen New York, NY 10017
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Austin Adams 270 Park Avenue, Executive Committee -
Executive Committee 35th Floor Technology
United States Citizen New York, NY 10017 JPMorgan Chase & Co.
270 Park Avenue, 35th Floor
New York, NY 10017
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David Coulter 270 Park Avenue, Executive Committee -
Executive Committee 35th Floor Vice Chairman
United States Citizen New York, NY 10017 JPMorgan Chase & Co.
270 Park Avenue, 35th Floor
New York, NY 10017
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Michael Cavanagh 270 Park Avenue, Executive Committee -
Executive Committee 35th Floor Finance
United States Citizen New York, NY 10017 JPMorgan Chase & Co.
270 Park Avenue, 35th Floor
New York, NY 10017
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Page 10 of 15 Pages
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Name, Position and Business Address (1) Present Principal
Citizenship Occupation and
Address of Employment
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John Farrell 270 Park Avenue, Executive Committee
Executive Committee 35th Floor Human Resources
United States Citizen New York, NY 10017 JPMorgan Chase & Co.
270 Park Avenue, 35th Floor
New York, NY 10017
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Joan Guggenheimer 270 Park Avenue, Executive Committee - Legal
Executive Committee 35th Floor JPMorgan Chase & Co.
United States Citizen New York, NY 10017 270 Park Avenue, 35th Floor
New York, NY 10017
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Fred Hill 270 Park Avenue, Executive Committee -
Executive Committee 35th Floor Marketing and
United States Citizen New York, NY 10017 Communications
JPMorgan Chase & Co.
270 Park Avenue, 35th Floor
New York, NY 10017
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William H. McDavid 270 Park Avenue, Executive Committee - Legal
Executive Committee 35th Floor JPMorgan Chase & Co.
United States Citizen New York, NY 10017 270 Park Avenue, 35th Floor
New York, NY 10017
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Jeff Walker 270 Park Avenue, Executive Committee -
Executive Committee 35th Floor Private Equity
United States Citizen New York, NY 10017 JPMorgan Chase & Co.
270 Park Avenue, 35th Floor
New York, NY 10017
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Don Wilson 270 Park Avenue, Executive Committee - Risk
Executive Committee 35th Floor JPMorgan Chase & Co.
United States Citizen New York, NY 10017 270 Park Avenue, 35th Floor
New York, NY 10017
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Page 1l of 15 Pages
(1) JPMorgan Chase Bank, National Association is a wholly-owned subsidiary
of JPMorgan Chase & Co., a global financial services firm.
(2) Honeywell International Inc. is a diversified technology and
manufacturing company of aerospace products and services; control technologies
for buildings, homes and industry; automotive products; power generation
systems; specialty chemicals; fibers; plastics and advance materials.
(3) Henry Crown and Company is an investment firm.
(4) Clear Creek Properties, Inc. is a real estate development company.
(5) Yum! Brands, Inc. is an organization engaged in the operation,
development, franchising and licensing of restaurants.
(6) Exxon Mobil Corporation is a global energy and petrochemical
organization.
(7) Wyeth is a research-based, global pharmaceutical and biotechnology
company.
Page 12 of 15 Pages
Schedule B
Parties to Voting Agreements with JPMorgan Chase Bank, National Association
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Name and Address Shares of Vastera common stock
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owned as of January 6, 2005
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Ford Motor Company 8,000,000
Address
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World Headquarters, Suite 1000
One American Road
Dearborn, MI 48126
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TCV II, V.O.F. 19,904
Address
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Technology Crossover Ventures
528 Ramona Street
Palo Alto, CA 94301
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TCV II, L.P. 612,765
Address
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Technology Crossover Ventures
528 Ramona Street
Palo Alto, CA 94301
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TCV II(Q), L.P. 471,103
Address
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Technology Crossover Ventures
528 Ramona Street
Palo Alto, CA 94301
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TCV II STRATEGIC PARTNERS, L.P. 83,603
Address
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Technology Crossover Ventures
528 Ramona Street
Palo Alto, CA 94301
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Page 13 of 15 Pages
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Name and Address Shares of Vastera common stock
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owned as of January 6, 2005
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TCV II, C.V. 93,556
Address
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Technology Crossover Ventures
528 Ramona Street
Palo Alto, CA 94301
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TCV IV, L.P. 2,571,535
Address
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Technology Crossover Ventures
528 Ramona Street
Palo Alto, CA 94301
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TCV IV, STRATEGIC PARTNERS, L.P. 95,885
Address
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Technology Crossover Ventures
528 Ramona Street
Palo Alto, CA 94301
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Page 14 of 15 Pages
EXHIBIT INDEX
Exhibit
Number Document
Exhibit 1 Agreement and Plan of Merger, dated January 6, 2005, by and among
JPMorgan Chase Bank, National Association, JPM Merger Sub Inc.,
and Vastera, Inc. (incorporated by reference to Exhibit 10.1 to
Vastera's Form 8-K Current Report filed January 7, 2005).
Exhibit 2 Voting Agreement, dated January 6, 2005, by and among JPMorgan
Chase Bank, National Association, TCV II, V.O.F., Technology
Crossover Ventures II, L.P., TCV II(Q), L.P., TCV II Strategic
Partners, L.P., Technology Crossover Ventures II, C.V., TCV IV,
L.P. and TCV IV Strategic Partners, L.P.
Exhibit 3 Voting Agreement, dated January 6, 2005, by and between
JPMorgan Chase Bank, National Association and Ford Motor
Company.
Page 15 of 15 Pages