AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON MAY 12 , 1997 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 AMENDMENT NO. 1 TO SCHEDULE 14D-9 SOLICITATION/RECOMMENDATION STATEMENT PURSUANT TO SECTION 14(d)(4) OF THE SECURITIES EXCHANGE ACT OF 1934 GIDDINGS & LEWIS, INC. (Name of Subject Company) GIDDINGS & LEWIS, INC. (Name of Person Filing Statement) COMMON STOCK, PAR VALUE $0.10 PER SHARE (INCLUDING THE ASSOCIATED PREFERRED SHARE PURCHASE RIGHTS) (Title of Class of Securities) 375048-10-5 (CUSIP Number of Class of Securities) TODD A. DILLMANN, ESQ. CORPORATE COUNSEL AND SECRETARY 142 DOTY STREET FOND DU LAC, WISCONSIN 54935 (414) 921-4100 (Name, address and telephone number of person authorized to receive notices and communications on behalf of the person(s) filing statement) With a Copy to: CHARLES M. MULANEY, JR., ESQ. SKADDEN, ARPS, SLATE, MEAGHER & FLOM (ILLINOIS) 333 W. WACKER DRIVE CHICAGO, ILLINOIS 60606 (312) 401-0700 This Statement amends and supplements the Solicitation/Recommendation Statement on Schedule 14D-9 filed with the Securities and Exchange Commission on May 8, 1997, (the "Schedule 14D-9"), relating to the offer by DSFA Corporation, a Delaware corporation (the "Purchaser") and a wholly owned subsidiary of Harnischfeger Industries, Inc., a Delaware corporation ("Parent"), to purchase all outstanding shares of Common Stock, $.10 par value per share (the "Common Shares"), together with (unless and until the Purchaser declares the Rights Condition is satisfied) the Rights, of Giddings & Lewis, Inc., a Wisconsin corporation (the "Company"), at a price of $19 per Common Share (and associated Rights), net to the seller in cash, without interest thereon (the "Offer Price"), upon the terms and subject to the conditions set forth in the Offer to Purchase, dated April 28, 1997 (the "Offer to Purchase"), and in the related Letter of Transmittal (the "Letter of Transmittal") (which, as either may be amended from time to time, together constitute the "Offer"). Capitalized terms used and not defined herein shall have the meanings assigned such terms in the Offer to Purchase and the Schedule 14D-9. ITEM 8. ADDITIONAL INFORMATION TO BE FURNISHED On May 12, 1997, Mr. Isles sent a letter to Mr. Grade in response to Mr. Grade's letter to Mr. Isles, dated May 9, 1997. The full text of such letter is filed herewith as Exhibit 15. ITEM 9. MATERIAL TO BE FILED AS EXHIBITS Exhibit 14 Text of Press release issued by Giddings & Lewis, Inc., dated May 12, 1997. Exhibit 15 Text of Letter from Marvin L. Isles to Jeffrey T. Grade, dated May 12, 1997. SIGNATURE After due inquiry and to the best of its knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete and correct. GIDDINGS & LEWIS, INC. BY: /s/ Douglas E. Barnett ------------------------- Name: Douglas E. Barnett Title: Vice President and Corporate Controller Dated: May 12, 1997 EXHIBIT INDEX Exhibit No. Description ----------- ----------- *Exhibit 1 Excerpts from the Company's Proxy Statement, dated March 21, 1997, relating to the Company's 1997 Annual Meeting of Shareholders *Exhibit 2 Form of Amended and Restated Key Executive Employment and Severance Agreement *Exhibit 3 Company's Management Stock Purchase Program, as Amended and Restated, dated April 30, 1997 *Exhibit 4 Amendment to Company's 1989 Stock Option Award Agreement, dated April 30, 1997 *Exhibit 5 Amendment to Company's 1989 Restricted Stock Award Agreement, dated April 30, 1997 *Exhibit 6 Form of Amendment to Company's 1993 Restricted Stock Award Agreement, dated April 30, 1997 *Exhibit 7 Text of Letter to Shareholders of the Company, dated May 8, 1997 *Exhibit 8 Text of Press Release issued by Giddings & Lewis, Inc., dated May 8, 1997 *Exhibit 9 Opinion of Credit Suisse First Boston Corporation, dated May 7, 1997 *Exhibit 10 Complaint seeking Declaratory and Injunctive Relief filed in the United States District Court for the Eastern District of Wisconsin on April 25, 1997. *Exhibit 11 Class Action seeking Declaratory and Injunctive Relief filed in the Circuit Court of Milwaukee County, Wisconsin, on May 6, 1997 *Exhibit 12 Text of Press Release issued by Giddings & Lewis, Inc., dated May 8, 1997 *Exhibit 13 Resolutions Authorizing Amendment of the Supplemental Executive Retirement Plan, dated April 30, 1997 Exhibit 14 Text of Press release issued by Giddings & Lewis, Inc., dated May 12, 1997 Exhibit 15 Text of Letter from Marvin L. Isles to Jeffrey T. Grade, dated May 12, 1997 _____________________________________ * Previously Filed. EXHIBIT 14 CONFIDENTIAL DRAFT May 12, 1997 2:00 PM EST FOR IMMEDIATE RELEASE FOR INFORMATION: Douglas E. Barnett Patricia B. Meinecke Mike Pascale/Rhonda Barnat Giddings & Lewis, Inc. Giddings & Lewis, Inc. Abernathy MacGregor Vice President and Director of 212/371-5999 Controller Communications 414/929-4374 414/929-4212 NEWS RELEASE GIDDINGS & LEWIS RESPONDS TO HARNISCHFEGER'S REQUEST FOR INFORMATION OFFER TO EXECUTE CUSTOMARY CONFIDENTIALITY AND STANDSTILL AGREEMENT STILL OPEN FOND DU LAC, WI, MAY 12, 1997 -- GIDDINGS & LEWIS, INC. (NASDAQ: GIDL) Giddings & Lewis sent the following letter to Harnischfeger today. The text is as follows: May 12, 1997 Mr. Jeffery T. Grade Chairman and Chief Executive Officer Harnischfeger Industries, Inc. 3600 South Lake Drive St. Francis, WI 53235-3716 Dear Mr. Grade: Your letter of May 9 requests that we provide you with information about Giddings & Lewis. You will remember that on April 25 we offered to furnish such information if you would execute a customary confidentiality and standstill agreement. This offer remains open. At that time you declined, stating rather emphatically that you had no need for additional information. Your request gives absolutely no reason as to how our providing you with information could be of any possible benefit to Giddings & Lewis or its stockholders. On May 7, our Board concluded that the Harnischfeger offer was inadequate and not in the best interests of Giddings & Lewis stockholders. We do not believe it is in our stockholder's best interests to provide Harnischfeger information merely to better enable it to pursue an offer that we find inadequate. Nor do we think our stockholders would be well served by our giving into demands that we immediately terminate our review of strategic alternatives and accept an inadequate offer. Harnischfeger has complained that our Board of Directors is using the provisions of Wisconsin corporate law and Giddings & Lewis' stockholder rights plan to facilitate its review of alternatives. You suggest that the Board has no right to allow such barriers to exist between your inadequate offer and Giddings & Lewis stockholders. Our Board of Directors is committed to serving the best interests of our stockholders and it will use the proper means available to do so. Moreover, we note that Harnischfeger has maintained for itself the protections of the Delaware business combination statute and that its board has adopted its own stockholder rights plan for the benefit of Harnischfeger's stockholders. We have no doubt that all your actions and requests are motivated by what you believe to be in the best interests of Harnischfeger stockholders. We serve a different constituency. Be assured that our Board of Directors will continue to act in the best interests of Giddings & Lewis stockholders. Sincerely, Marvin L. Isles Chairman and Chief Executive Officer Headquartered in Fond du Lac, Wisconsin, Giddings & Lewis is the largest supplier of industrial automation products and machine tools in North America, and among the largest in the world. The company serves customers worldwide with products and services to improve manufacturing productivity. To receive Giddings & Lewis's latest news at no charge via fax, simply call Company News On Call 1-800-7585804, ext. 119821. Internet address: http://www.giddings.com EXHIBIT 15 [GIDDINGS & LEWIS, INC. LETTERHEAD] DRAFT Privileged and Confidential Attorney Work Product May 12, 1997 Mr. Garth [Company] [Address] [City, State, Zip] Dear Mr. Garth: Your letter of May 9 requests that we provide you with information about Giddings & Lewis. You will remember that on April 25 we offered to furnish such information if you would execute a customary confidentiality and standstill agreement. This offer remains open. At that time you declined, stating rather emphatically that you had no need for additional information. Your request gives absolutely no reason as to how our providing you with information could be of any possible benefit to Giddings & Lewis or its stockholders. On May 7, our Board concluded that the Harnischfeger offer was inadequate and not in the best interests of Giddings & Lewis stockholders. We do not believe it is in our stockholder's best interests to provide Harnischfeger information merely to better enable it to pursue an offer that we find inadequate. Nor do we think our stockholders would be well served by our giving into demands that we immediately terminate our review of strategic alternatives and accept an inadequate offer. Harnischfeger has complained that our Board of Directors is using the provisions of Wisconsin corporate law and Giddings & Lewis' stockholder rights plan to facilitate its review of alternatives. You suggest that the Board has no right to allow such barriers to exist between your inadequate offer and Giddings & Lewis stockholders. Our Board of Directors is committed to serving the best interests of our stockholders and it will use the proper means available to do so. Moreover, we note that Harnischfeger has maintained for itself the protections of the Delaware business combination statute and that its board has adopted its own stockholder rights plan for the benefit of Harnischfeger's stockholders. We have no doubt that all your actions and requests are motivated by what you believe to be in the best interests of Harnischfeger stockholders. We serve a different constituency. Be assured that our Board of Directors will continue to act in the best interests of Giddings & Lewis stockholders. Sincerely, Marvin L. Isles