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)
Laureate Education, Inc.
------------------------
(Name of Issuer)
COMMON STOCK, PAR VALUE $.01 PER SHARE
(Title of Class of Securities)
518613104
---------
(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)
February 21, 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 /X/.
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 50 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).
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CUSIP No. 518613104 13D Page 2 of 50 Pages
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================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
SELECT EQUITY GROUP, INC. (13-3669571)
--------------------------------------------------------------------------------
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
New York
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,951,441
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,951,441
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,951,441
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.79%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO, IA
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- -----------------------
CUSIP No. 518613104 13D Page 3 of 50 Pages
---------------------- -----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
SELECT OFFSHORE ADVISORS, LLC (13-4186328)
--------------------------------------------------------------------------------
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
New York
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,722,689
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,722,689
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,722,689
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.35%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IA
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- -----------------------
CUSIP No. 518613104 13D Page 4 of 50 Pages
---------------------- -----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
GEORGE S. LOENING
--------------------------------------------------------------------------------
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 3,674,130
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
3,674,130
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
3,674,130
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.14%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- -----------------------
CUSIP No. 518613104 13D Page 5 of 50 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, par value
$0.01 per share (the "Shares"), of Laureate Education, Inc. (the "Issuer"). The
address of the principal executive offices of the Issuer is 1001 Fleet Street,
Baltimore, Maryland 21202.
Item 2. IDENTITY AND BACKGROUND.
(a) This statement is filed by Select Equity Group, Inc., a New York
corporation ("Select Equity"), Select Offshore Advisors, LLC, a New York limited
liability company ("Select Offshore") and George S. Loening. Each of the
foregoing is referred to as a "Reporting Person" and collectively as the
"Reporting Persons."
George S. Loening is the President and controlling shareholder of
Select Equity and the Manager of Select Offshore. By virtue of his positions
with Select Equity and Select Offshore, Mr. Loening has the power to vote and
dispose of the Issuer's Shares owned by Select Equity and Select Offshore.
Accordingly, the Reporting Persons are hereby filing a joint Schedule 13D.
(b) The principal business address of each Reporting Person is 380
Lafayette Street, 6th Floor, New York, New York 10003.
(c) The principal business of each of Select Equity and Select
Offshore is investment advisory services. The principal occupation of Mr.
Loening is serving as the President of Select Equity and the Manager of Select
Offshore. The officers and directors of Select Equity are set forth on Schedule
B and incorporated by reference in this Item 2.
(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) Mr. Loening is a citizen of the United States of America.
Item 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
The aggregate purchase price of the 1,951,441 Shares beneficially
owned by Select Equity is approximately $94,703,487, including brokerage
commissions. The Shares owned by Select Equity were acquired with client funds.
---------------------- -----------------------
CUSIP No. 518613104 13D Page 6 of 50 Pages
---------------------- -----------------------
The aggregate purchase price of the 1,722,689 Shares beneficially owned by
Select Offshore is approximately $80,129,208, including brokerage commissions.
The Shares owned by Select Offshore were acquired with client funds. The
aggregate purchase cost of the 3,674,130 Shares beneficially owned in the
aggregate by all of the Reporting Persons is approximately $174,832,695,
including brokerage commissions.
Item 4. PURPOSE OF TRANSACTION.
The Reporting Persons 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 of
additional Shares desirable, the Reporting Persons may endeavor to increase
their position in the Issuer through, among other things, the purchase of Shares
on the open market, on such terms and at such times as the Reporting Persons may
deem advisable.
On February 21, 2007, Select Equity delivered a letter to each
independent member of the Board of Directors of the Issuer (the "Independent
Members") expressing that Select Equity has significant reservations about the
management-led buyout transaction at $60.50 per share proposed by an investment
group led by the Issuer's Chairman and Chief Executive Officer, Douglas Becker
(the "Proposed Transaction"). In the letter, Select Equity states that the
Proposed Transaction is grossly inadequate and that the process by which the
deal was proposed and evaluated was flawed by clear conflicts of interest. The
letter urges the Independent Members to reconsider the Proposed Transaction and
states that if the terms of the Proposed Transaction are not amended to better
reflect the true value of the Issuer, Select Equity will not support the
Proposed Transaction. A copy of the letter is attached hereto as Exhibit 2 and
is incorporated herein by reference.
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 Proposed Transaction and
potentially concerning other matters with respect to the Reporting Persons'
investment in the Shares, including, without limitation, the business,
operations, governance, management, strategy and future plans of the Issuer.
Depending on various factors, including, without limitation, the status of the
Proposed Transaction 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.
---------------------- -----------------------
CUSIP No. 518613104 13D Page 7 of 50 Pages
---------------------- -----------------------
Item 5. INTEREST IN SECURITIES OF THE ISSUER.
The aggregate percentage of Shares reported owned by each person
named herein is based upon 51,435,244 Shares outstanding, as of October 30,
2006, 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 November 3, 2006.
As of the close of business on February 20, 2007, Select Equity
beneficially owned 1,951,441 Shares, constituting approximately 3.79% of the
Shares outstanding. As of the close of business on February 20, 2007, Select
Offshore beneficially owned 1,722,689 Shares, constituting approximately 3.35%
of the Shares outstanding. As the President and controlling shareholder of
Select Equity and the Manager of Select Offshore, Mr. Loening may be deemed to
beneficially own the 1,951,441 Shares owned by Select Equity and the 1,722,689
Shares owned by Select Offshore, constituting together approximately 7.14% of
the Shares outstanding. Mr. Loening has sole voting and dispositive power with
respect to the 3,674,130 Shares owned collectively by Select Equity and Select
Offshore by virtue of his authority to vote and dispose of such Shares. Mr.
Loening disclaims beneficial ownership of such Shares except to the extent of
his pecuniary interest therein.
(b) By virtue of his positions with Select Equity and Select
Offshore, Mr. Loening has the sole power to vote and dispose of the Shares
reported in this Schedule 13D.
(c) Schedule A annexed hereto lists all transactions in the Shares
during the past sixty days by the Reporting Persons. All of such transactions
were effected in the open market.
(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, the Shares.
(e) Not applicable.
Item 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
RESPECT TO SECURITIES OF THE ISSUER.
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.
Item 7. MATERIAL TO BE FILED AS EXHIBITS.
1. Joint Filing Agreement by and among Select Equity, Select
Offshore and George S. Loening, dated February 21, 2007.
---------------------- -----------------------
CUSIP No. 518613104 13D Page 8 of 50 Pages
---------------------- -----------------------
2. Letter from Select Equity to the Independent Members of the Board
of Directors of the Issuer, dated February 21, 2007.
---------------------- -----------------------
CUSIP No. 518613104 13D Page 9 of 50 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: February 21, 2007
SELECT EQUITY GROUP, INC.
By:/s/ George S. Loening
-------------------------------------
Name: George S. Loening
Title: President
SELECT OFFSHORE ADVISORS, LLC
By:/s/ George S. Loening
-------------------------------------
Name: George S. Loening
Title: Manager
/s/ George S. Loening
----------------------------------------
GEORGE S. LOENING
---------------------- -----------------------
CUSIP No. 518613104 13D Page 10 of 50 Pages
---------------------- -----------------------
SCHEDULE A
TRANSACTIONS IN THE SHARES DURING THE PAST 60 DAYS
Shares of Common Stock Price Per Date of
Purchased/(Sold) Share($) Purchase/ ale
---------------- -------- -------------
SELECT EQUITY GROUP, INC.
36900 51.2500 12/15/06
12500 51.2500 12/15/06
(2600) 50.1310 12/19/06
(3700) 50.1310 12/19/06
(3200) 50.1310 12/19/06
900 50.2000 12/20/06
4600 49.9800 12/20/06
300 50.2000 12/20/06
1600 49.9800 12/20/06
5462 49.1757 12/21/06
831 48.9500 12/21/06
20800 49.7545 12/21/06
15800 50.0860 12/21/06
5902 49.1757 12/21/06
898 48.9500 12/21/06
1874 49.1757 12/21/06
285 48.9500 12/21/06
7100 49.7545 12/21/06
5300 50.0860 12/21/06
8449 49.1757 12/21/06
1286 48.9500 12/21/06
6978 49.1757 12/21/06
1062 48.9500 12/21/06
42 49.0500 12/22/06
1663 49.0500 12/22/06
1247 48.8000 12/22/06
---------------------- -----------------------
CUSIP No. 518613104 13D Page 11 of 50 Pages
---------------------- -----------------------
45 49.0500 12/22/06
1796 49.0500 12/22/06
1347 48.8000 12/22/06
14 49.0500 12/22/06
570 49.0500 12/22/06
428 48.8000 12/22/06
64 49.0500 12/22/06
2574 49.0500 12/22/06
1930 48.8000 12/22/06
53 49.0500 12/22/06
2123 49.0500 12/22/06
1593 48.8000 12/22/06
4455 49.4955 12/26/06
4812 49.4955 12/26/06
1529 49.4955 12/26/06
6897 49.4955 12/26/06
5691 49.4955 12/26/06
31100 48.6300 01/03/07
127 48.6300 01/03/07
73 48.6300 01/03/07
127 48.6300 01/03/07
73 48.6300 01/03/07
24132 48.6300 01/03/07
13968 48.6300 01/03/07
63 48.6300 01/03/07
37 48.6300 01/03/07
35612 48.4000 01/08/07
2855 48.3729 01/08/07
12569 48.4000 01/08/07
1008 48.3729 01/08/07
1375 51.4577 01/18/07
535 51.4577 01/18/07
---------------------- -----------------------
CUSIP No. 518613104 13D Page 12 of 50 Pages
---------------------- -----------------------
1895 51.4577 01/18/07
40 51.4578 01/18/07
85 51.4576 01/18/07
40 51.4578 01/18/07
1095 51.4577 01/18/07
2010 51.4577 01/18/07
520 51.4577 01/18/07
125 51.4577 01/18/07
210 51.4577 01/18/07
555 51.4577 01/18/07
110 51.4577 01/18/07
85 51.4576 01/18/07
2725 51.4577 01/18/07
110 51.4577 01/18/07
40 51.4578 01/18/07
50 51.4578 01/18/07
1541 51.4577 01/18/07
110 51.4577 01/18/07
4495 51.4577 01/18/07
90 51.4577 01/18/07
290 51.4577 01/18/07
140 51.4577 01/18/07
245 51.4577 01/18/07
170 51.4577 01/18/07
220 51.4577 01/18/07
85 51.4576 01/18/07
2640 51.4577 01/18/07
110 51.4577 01/18/07
25 51.4576 01/18/07
135 51.4577 01/18/07
60 51.4577 01/18/07
75 51.4577 01/18/07
---------------------- -----------------------
CUSIP No. 518613104 13D Page 13 of 50 Pages
---------------------- -----------------------
2560 51.4577 01/18/07
40 51.4578 01/18/07
65 51.4577 01/18/07
250 51.4577 01/18/07
75 51.4577 01/18/07
45 51.4578 01/18/07
115 51.4577 01/18/07
325 51.4577 01/18/07
55 51.4576 01/18/07
1825 51.4577 01/18/07
90 51.4577 01/18/07
2910 51.4577 01/18/07
75 51.4577 01/18/07
450 51.4577 01/18/07
110 51.4577 01/18/07
175 51.4577 01/18/07
40 51.4578 01/18/07
610 51.4577 01/18/07
95 51.4577 01/18/07
1185 51.4577 01/18/07
45 51.4578 01/18/07
65 51.4577 01/18/07
80 51.4578 01/18/07
795 51.4577 01/18/07
95 51.4577 01/18/07
110 51.4577 01/18/07
370 51.4577 01/18/07
185 51.4577 01/18/07
90 51.4577 01/18/07
85 51.4576 01/18/07
30 51.4577 01/18/07
50 51.4578 01/18/07
---------------------- -----------------------
CUSIP No. 518613104 13D Page 14 of 50 Pages
---------------------- -----------------------
600 51.4577 01/18/07
165 52.7151 01/19/07
550 52.7151 01/19/07
130 52.7151 01/19/07
65 52.7151 01/19/07
185 52.7151 01/19/07
990 52.7151 01/19/07
80 52.7151 01/19/07
985 52.7151 01/19/07
275 52.7151 01/19/07
5 51.5600 01/19/07
160 52.7151 01/19/07
80 52.7151 01/19/07
170 52.7151 01/19/07
1470 52.7151 01/19/07
95 52.7151 01/19/07
305 52.7151 01/19/07
200 52.7151 01/19/07
2570 52.7151 01/19/07
100 52.7151 01/19/07
1255 52.7151 01/19/07
170 52.7151 01/19/07
85 52.8327 01/19/07
615 52.7151 01/19/07
250 52.7151 01/19/07
370 52.7151 01/19/07
145 52.7151 01/19/07
330 52.7151 01/19/07
105 52.7151 01/19/07
150 52.7151 01/19/07
1750 52.7151 01/19/07
850 52.7151 01/19/07
---------------------- -----------------------
CUSIP No. 518613104 13D Page 15 of 50 Pages
---------------------- -----------------------
150 52.7151 01/19/07
165 52.7151 01/19/07
385 52.7151 01/19/07
130 52.7151 01/19/07
430 52.7151 01/19/07
90 52.7151 01/19/07
100 52.7151 01/19/07
985 52.7151 01/19/07
710 52.7151 01/19/07
195 52.7151 01/19/07
270 52.7151 01/19/07
105 52.7151 01/19/07
180 52.7151 01/19/07
150 52.7151 01/19/07
295 52.7151 01/19/07
130 52.7151 01/19/07
340 52.7151 01/19/07
35 52.7151 01/19/07
255 52.7151 01/19/07
1630 52.7151 01/19/07
1310 52.7151 01/19/07
225 52.7151 01/19/07
605 52.7151 01/19/07
100 52.7151 01/19/07
260 52.7151 01/19/07
270 52.7151 01/19/07
50 52.7152 01/19/07
95 52.7151 01/19/07
2405 52.7151 01/19/07
105 52.7151 01/19/07
65 52.7151 01/19/07
65 52.7151 01/19/07
---------------------- -----------------------
CUSIP No. 518613104 13D Page 16 of 50 Pages
---------------------- -----------------------
180 52.7151 01/19/07
180 52.7151 01/19/07
130 52.7151 01/19/07
60 52.7152 01/19/07
250 52.7151 01/19/07
450 52.7151 01/19/07
115 52.7151 01/19/07
90 52.7151 01/19/07
200 52.7151 01/19/07
245 52.7151 01/19/07
150 52.7151 01/19/07
370 52.7151 01/19/07
35 52.7151 01/19/07
50 52.7152 01/19/07
1205 52.7151 01/19/07
745 52.7151 01/19/07
15 51.5600 01/19/07
100 52.7151 01/19/07
385 52.7151 01/19/07
400 52.7151 01/19/07
485 52.7151 01/19/07
60 52.7152 01/19/07
115 52.7151 01/19/07
200 52.7151 01/19/07
230 52.7151 01/19/07
270 52.7151 01/19/07
135 52.7151 01/19/07
110 52.7151 01/19/07
135 52.7151 01/19/07
870 52.7151 01/19/07
200 52.7151 01/19/07
60 52.7152 01/19/07
---------------------- -----------------------
CUSIP No. 518613104 13D Page 17 of 50 Pages
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265 52.7151 01/19/07
145 52.7151 01/19/07
115 52.7151 01/19/07
40 52.7150 01/19/07
50 52.7152 01/19/07
490 52.7151 01/19/07
130 52.7151 01/19/07
340 52.7151 01/19/07
315 52.7151 01/19/07
860 52.7151 01/19/07
130 52.7151 01/19/07
60 52.7152 01/19/07
130 52.7151 01/19/07
85 52.7151 01/19/07
60 52.7152 01/19/07
80 52.7151 01/19/07
50 52.7152 01/19/07
40 52.7150 01/19/07
70 52.7151 01/19/07
260 52.7151 01/19/07
175 52.7151 01/19/07
630 52.7151 01/19/07
265 52.7151 01/19/07
540 52.7151 01/19/07
390 52.7151 01/19/07
80 52.7151 01/19/07
105 52.7151 01/19/07
80 52.7151 01/19/07
110 52.7151 01/19/07
175 52.7151 01/19/07
55 52.7151 01/19/07
35 52.7151 01/19/07
---------------------- -----------------------
CUSIP No. 518613104 13D Page 18 of 50 Pages
---------------------- -----------------------
455 52.7151 01/19/07
40 52.7150 01/19/07
175 52.7151 01/19/07
130 52.7151 01/19/07
30 52.7150 01/19/07
100 52.7151 01/19/07
590 52.7151 01/19/07
255 52.7151 01/19/07
640 52.7151 01/19/07
755 52.7151 01/19/07
180 52.7151 01/19/07
6585 52.7151 01/19/07
225 52.7151 01/19/07
5 51.5600 01/19/07
730 52.7151 01/19/07
115 52.7151 01/19/07
135 53.8349 01/22/07
80 53.8349 01/22/07
70 53.8349 01/22/07
225 53.8349 01/22/07
145 53.8349 01/22/07
235 53.8349 01/22/07
410 53.8349 01/22/07
60 53.8348 01/22/07
80 53.8349 01/22/07
65 53.8349 01/22/07
265 53.8349 01/22/07
170 53.8349 01/22/07
25 53.8348 01/22/07
810 53.8349 01/22/07
3410 53.8349 01/22/07
1110 53.8349 01/22/07
---------------------- -----------------------
CUSIP No. 518613104 13D Page 19 of 50 Pages
---------------------- -----------------------
2690 53.8349 01/22/07
70 53.8349 01/22/07
230 53.8349 01/22/07
55 53.8349 01/22/07
395 53.8349 01/22/07
985 53.8349 01/22/07
125 53.8349 01/22/07
50 53.8348 01/22/07
115 53.8349 01/22/07
140 53.8349 01/22/07
160 53.8349 01/22/07
70 53.8349 01/22/07
110 53.8349 01/22/07
10 53.6000 01/22/07
85 53.8349 01/22/07
135 53.8349 01/22/07
55 53.8349 01/22/07
125 53.8349 01/22/07
85 53.8349 01/22/07
275 53.8349 01/22/07
285 53.8349 01/22/07
30 53.8350 01/22/07
30 53.8350 01/22/07
190 53.8349 01/22/07
120 53.8349 01/22/07
75 53.8349 01/22/07
55 53.8349 01/22/07
470 53.8349 01/22/07
105 53.8349 01/22/07
1290 53.8349 01/22/07
245 53.8349 01/22/07
125 53.8349 01/22/07
---------------------- -----------------------
CUSIP No. 518613104 13D Page 20 of 50 Pages
---------------------- -----------------------
2970 53.8349 01/22/07
170 53.8349 01/22/07
210 53.8349 01/22/07
235 53.8349 01/22/07
630 53.8349 01/22/07
2630 53.8349 01/22/07
1285 53.8349 01/22/07
130 53.8349 01/22/07
200 53.8349 01/22/07
790 53.8349 01/22/07
590 53.8349 01/22/07
540 53.8349 01/22/07
410 53.8349 01/22/07
415 53.8349 01/22/07
1005 53.8349 01/22/07
170 53.8349 01/22/07
80 53.8349 01/22/07
225 53.8349 01/22/07
465 53.8349 01/22/07
80 53.8349 01/22/07
270 53.8349 01/22/07
275 53.8349 01/22/07
145 53.8349 01/22/07
135 53.8349 01/22/07
115 53.8349 01/22/07
110 53.8349 01/22/07
595 53.8349 01/22/07
65 53.8349 01/22/07
85 53.8349 01/22/07
100 53.8349 01/22/07
5 53.6000 01/22/07
55 53.8349 01/22/07
---------------------- -----------------------
CUSIP No. 518613104 13D Page 21 of 50 Pages
---------------------- -----------------------
145 53.8349 01/22/07
60 53.8348 01/22/07
25 53.6000 01/22/07
30 53.8350 01/22/07
1550 53.8349 01/22/07
315 53.8349 01/22/07
105 53.8349 01/22/07
85 53.8349 01/22/07
325 53.8349 01/22/07
360 53.8349 01/22/07
40 53.8350 01/22/07
180 53.8349 01/22/07
190 53.8349 01/22/07
255 53.8349 01/22/07
1430 53.8349 01/22/07
565 53.8349 01/22/07
5105 53.8349 01/22/07
60 53.8348 01/22/07
65 53.8349 01/22/07
85 53.8349 01/22/07
205 53.8349 01/22/07
160 53.8349 01/22/07
95 53.8349 01/22/07
100 53.8349 01/22/07
105 53.8349 01/22/07
220 53.8349 01/22/07
95 53.8349 01/22/07
15 53.6000 01/22/07
130 53.8349 01/22/07
35 53.8349 01/22/07
245 53.8349 01/22/07
45 53.8349 01/22/07
---------------------- -----------------------
CUSIP No. 518613104 13D Page 22 of 50 Pages
---------------------- -----------------------
55 53.8349 01/22/07
275 53.8349 01/22/07
80 53.8349 01/22/07
60 53.8348 01/22/07
150 53.8349 01/22/07
40 53.8350 01/22/07
120 53.8349 01/22/07
260 53.8349 01/22/07
565 53.8349 01/22/07
65 53.8349 01/22/07
235 53.8349 01/22/07
1215 53.8349 01/22/07
30 53.8350 01/22/07
85 53.8349 01/22/07
205 53.8349 01/22/07
90 53.8349 01/22/07
590 53.8349 01/22/07
80 53.8349 01/22/07
555 53.8349 01/22/07
30 53.8350 01/22/07
60 53.8348 01/22/07
1010 53.8349 01/22/07
70 53.8349 01/22/07
100 53.8349 01/22/07
80 53.8349 01/22/07
235 53.8349 01/22/07
730 53.8349 01/22/07
540 53.8349 01/22/07
1295 53.8349 01/22/07
600 53.8349 01/22/07
700 53.8349 01/22/07
6120 54.5023 01/23/07
---------------------- -----------------------
CUSIP No. 518613104 13D Page 23 of 50 Pages
---------------------- -----------------------
275 54.6708 01/23/07
60 54.6708 01/23/07
300 54.6708 01/23/07
994 54.5023 01/23/07
25 54.5024 01/23/07
25 54.5024 01/23/07
160 54.6708 01/23/07
765 54.5023 01/23/07
135 54.6708 01/23/07
190 54.5023 01/23/07
420 54.6708 01/23/07
80 54.5023 01/23/07
70 54.6709 01/23/07
120 54.0000 01/23/07
60 54.5023 01/23/07
7059 54.6708 01/23/07
195 54.6708 01/23/07
25 54.5024 01/23/07
130 54.6708 01/23/07
105 54.5023 01/23/07
120 54.6708 01/23/07
615 54.6708 01/23/07
65 54.6708 01/23/07
35 54.5023 01/23/07
110 54.6708 01/23/07
280 54.6708 01/23/07
195 54.5023 01/23/07
140 54.5023 01/23/07
25 54.5024 01/23/07
740 54.5023 01/23/07
60 54.6708 01/23/07
145 54.5023 01/23/07
---------------------- -----------------------
CUSIP No. 518613104 13D Page 24 of 50 Pages
---------------------- -----------------------
65 54.5023 01/23/07
70 54.6709 01/23/07
40 54.6708 01/23/07
45 54.6709 01/23/07
200 54.6708 01/23/07
160 54.5023 01/23/07
4125 54.5023 01/23/07
620 54.5023 01/23/07
81 54.6707 01/23/07
730 54.6708 01/23/07
50 54.5022 01/23/07
70 54.6709 01/23/07
50 54.5022 01/23/07
30 54.6707 01/23/07
115 54.6708 01/23/07
50 54.5022 01/23/07
60 54.6708 01/23/07
75 54.6708 01/23/07
1290 54.5023 01/23/07
30 54.5023 01/23/07
300 54.5023 01/23/07
190 54.6708 01/23/07
275 54.6708 01/23/07
7845 54.6708 01/23/07
60 54.5023 01/23/07
845 54.5023 01/23/07
30 54.6707 01/23/07
1685 54.5023 01/23/07
1005 54.5023 01/23/07
450 54.6708 01/23/07
450 54.6708 01/23/07
300 54.5023 01/23/07
---------------------- -----------------------
CUSIP No. 518613104 13D Page 25 of 50 Pages
---------------------- -----------------------
40 54.5023 01/23/07
125 54.5023 01/23/07
40 54.6708 01/23/07
525 54.5023 01/23/07
30 54.6707 01/23/07
85 53.7275 01/24/07
205 54.4440 01/24/07
75 53.7275 01/24/07
85 53.7275 01/24/07
1045 53.7275 01/24/07
85 53.7275 01/24/07
175 53.7275 01/24/07
180 53.7275 01/24/07
130 53.7275 01/24/07
270 53.7275 01/24/07
350 53.7275 01/24/07
55 53.7275 01/24/07
25 53.7276 01/24/07
95 53.7275 01/24/07
240 53.7275 01/24/07
25 53.7276 01/24/07
25 53.7276 01/24/07
95 53.7275 01/24/07
745 53.7275 01/24/07
35 53.7274 01/24/07
2275 53.7275 01/24/07
555 53.7275 01/24/07
110 53.7275 01/24/07
65 53.7275 01/24/07
370 53.7275 01/24/07
105 53.7275 01/24/07
125 53.7275 01/24/07
---------------------- -----------------------
CUSIP No. 518613104 13D Page 26 of 50 Pages
---------------------- -----------------------
390 53.7275 01/24/07
75 53.7275 01/24/07
75 53.7275 01/24/07
75 53.7275 01/24/07
75 53.7275 01/24/07
1340 53.7275 01/24/07
140 53.7275 01/24/07
240 53.7275 01/24/07
105 53.7275 01/24/07
45 53.7276 01/24/07
685 53.7275 01/24/07
205 53.7275 01/24/07
285 53.7275 01/24/07
2010 53.7275 01/24/07
1385 53.7275 01/24/07
320 53.7275 01/24/07
55 53.7275 01/24/07
110 53.7275 01/24/07
65 53.7275 01/24/07
170 53.7275 01/24/07
1640 53.7275 01/24/07
105 53.7275 01/24/07
160 53.7275 01/24/07
695 53.7275 01/24/07
290 53.7275 01/24/07
45 53.7276 01/24/07
20 54.4440 01/24/07
65 53.7275 01/24/07
45 53.7276 01/24/07
355 53.7275 01/24/07
465 53.7275 01/24/07
1430 53.7275 01/24/07
---------------------- -----------------------
CUSIP No. 518613104 13D Page 27 of 50 Pages
---------------------- -----------------------
85 53.7275 01/24/07
85 53.7275 01/24/07
200 53.7275 01/24/07
390 53.7275 01/24/07
110 53.7275 01/24/07
25 53.7276 01/24/07
95 53.7275 01/24/07
35 53.7274 01/24/07
25 53.7276 01/24/07
155 53.7275 01/24/07
940 53.7275 01/24/07
85 53.7275 01/24/07
1120 53.7275 01/24/07
85 53.7275 01/24/07
645 53.7275 01/24/07
200 53.7275 01/24/07
105 53.7275 01/24/07
145 53.7275 01/24/07
45 53.7276 01/24/07
45 53.7276 01/24/07
160 53.7275 01/24/07
110 53.7275 01/24/07
885 54.4440 01/24/07
615 53.7275 01/24/07
65 53.7275 01/24/07
320 53.7275 01/24/07
910 53.7275 01/24/07
1145 53.7275 01/24/07
45 54.4440 01/24/07
120 53.7275 01/24/07
105 53.7275 01/24/07
120 53.7275 01/24/07
---------------------- -----------------------
CUSIP No. 518613104 13D Page 28 of 50 Pages
---------------------- -----------------------
115 53.7275 01/24/07
195 53.7275 01/24/07
80 53.7275 01/24/07
85 53.7275 01/24/07
45 53.7276 01/24/07
1500 53.7275 01/24/07
55 53.7275 01/24/07
2555 53.7275 01/24/07
135 53.7275 01/24/07
295 53.7275 01/24/07
500 53.7275 01/24/07
160 53.7275 01/24/07
290 53.7275 01/24/07
180 53.7275 01/24/07
120 53.7275 01/24/07
85 53.7275 01/24/07
830 53.7275 01/24/07
65 53.7275 01/24/07
45 53.7276 01/24/07
55 53.7275 01/24/07
45 53.7276 01/24/07
30 53.7277 01/24/07
70 53.7274 01/24/07
145 53.7275 01/24/07
50 53.7276 01/24/07
1075 53.7275 01/24/07
145 53.7275 01/24/07
90 53.7276 01/24/07
100 53.7275 01/24/07
980 53.6300 01/25/07
265 53.7327 01/25/07
90 53.7327 01/25/07
---------------------- -----------------------
CUSIP No. 518613104 13D Page 29 of 50 Pages
---------------------- -----------------------
80 53.7328 01/25/07
170 53.6300 01/25/07
70 53.7327 01/25/07
435 53.7327 01/25/07
85 53.7327 01/25/07
65 53.6300 01/25/07
95 53.7327 01/25/07
260 53.7327 01/25/07
205 53.7327 01/25/07
325 53.6300 01/25/07
100 53.6300 01/25/07
60 53.7327 01/25/07
115 53.5997 01/25/07
295 53.7327 01/25/07
115 53.7327 01/25/07
120 53.7327 01/25/07
345 53.7327 01/25/07
2845 53.7327 01/25/07
50 53.5998 01/25/07
320 53.7327 01/25/07
70 53.7327 01/25/07
130 53.7327 01/25/07
70 53.7327 01/25/07
40 53.7328 01/25/07
640 53.7327 01/25/07
275 53.7327 01/25/07
210 53.7327 01/25/07
240 53.7327 01/25/07
80 53.6300 01/25/07
890 53.7327 01/25/07
9905 53.7327 01/25/07
240 53.7327 01/25/07
---------------------- -----------------------
CUSIP No. 518613104 13D Page 30 of 50 Pages
---------------------- -----------------------
65 53.6300 01/25/07
660 53.7327 01/25/07
930 53.7327 01/25/07
325 53.7327 01/25/07
45 53.7327 01/25/07
150 53.6300 01/25/07
110 53.6300 01/25/07
155 53.6300 01/25/07
260 53.6300 01/25/07
255 53.7327 01/25/07
80 53.7328 01/25/07
170 53.6300 01/25/07
145 53.7327 01/25/07
120 53.7327 01/25/07
205 53.5997 01/25/07
115 53.7327 01/25/07
70 53.7327 01/25/07
85 53.7327 01/25/07
95 53.7327 01/25/07
150 53.7327 01/25/07
75 53.7327 01/25/07
290 53.7327 01/25/07
70 53.7327 01/25/07
550 53.7327 01/25/07
1200 53.7327 01/25/07
800 53.7327 01/25/07
55 53.7327 01/25/07
80 53.7328 01/25/07
80 53.7328 01/25/07
55 53.6300 01/25/07
170 53.7327 01/25/07
115 53.7327 01/25/07
---------------------- -----------------------
CUSIP No. 518613104 13D Page 31 of 50 Pages
---------------------- -----------------------
30 53.7327 01/25/07
55 53.7327 01/25/07
1660 53.7327 01/25/07
210 53.6300 01/25/07
155 53.7327 01/25/07
635 53.7327 01/25/07
215 53.7327 01/25/07
85 53.7327 01/25/07
1055 53.7327 01/25/07
170 53.7327 01/25/07
65 53.6300 01/25/07
2345 53.7327 01/25/07
165 53.7327 01/25/07
170 53.7327 01/25/07
315 53.6300 01/25/07
85 53.7327 01/25/07
305 53.6300 01/25/07
235 53.7327 01/25/07
135 53.7327 01/25/07
80 53.7328 01/25/07
260 53.7736 01/25/07
515 53.5997 01/25/07
70 53.7736 01/25/07
145 53.5997 01/25/07
400 53.7327 01/25/07
510 53.6300 01/25/07
190 53.6300 01/25/07
100 53.7327 01/25/07
1860 53.7327 01/25/07
705 53.6300 01/25/07
170 53.7327 01/25/07
215 53.7327 01/25/07
---------------------- -----------------------
CUSIP No. 518613104 13D Page 32 of 50 Pages
---------------------- -----------------------
90 53.6300 01/25/07
255 53.7327 01/25/07
1220 53.7327 01/25/07
90 53.7327 01/25/07
85 53.6300 01/25/07
90 53.7327 01/25/07
7775 53.6300 01/25/07
475 53.6300 01/25/07
185 53.7327 01/25/07
70 53.7327 01/25/07
170 53.6300 01/25/07
955 53.7327 01/25/07
510 53.7327 01/25/07
295 53.6300 01/25/07
80 53.7328 01/25/07
235 53.7327 01/25/07
70 53.7327 01/25/07
3080 53.6300 01/25/07
55 53.6300 01/25/07
55 53.7327 01/25/07
660 53.6300 01/25/07
80 53.7328 01/25/07
65 53.7328 01/25/07
510 53.7327 01/25/07
4960 53.6300 01/25/07
50 53.6300 01/25/07
140 53.7327 01/25/07
85 53.7327 01/25/07
105 53.7327 01/25/07
65 53.7328 01/25/07
275 53.6300 01/25/07
600 53.6300 01/25/07
---------------------- -----------------------
CUSIP No. 518613104 13D Page 33 of 50 Pages
---------------------- -----------------------
35 53.7326 01/25/07
35 53.7326 01/25/07
35 53.5997 01/25/07
50 53.7328 01/25/07
4 53.7425 01/25/07
855 53.6300 01/25/07
75 53.7327 01/25/07
65 53.7328 01/25/07
160 53.5997 01/25/07
830 53.5997 01/25/07
50 53.7328 01/25/07
105 53.7327 01/25/07
215 53.7327 01/25/07
55 53.7327 01/25/07
130 53.7327 01/25/07
85 53.7327 01/25/07
50 53.7328 01/25/07
115 53.7327 01/25/07
745 53.7327 01/25/07
50 53.7328 01/25/07
1280 53.6300 01/25/07
565 53.7327 01/25/07
140 53.5997 01/25/07
70 53.7327 01/25/07
140 53.7327 01/25/07
1310 53.7327 01/25/07
35 53.7326 01/25/07
275 53.6300 01/25/07
140 53.7327 01/25/07
390 53.5997 01/25/07
145 53.6300 01/25/07
130 53.7327 01/25/07
---------------------- -----------------------
CUSIP No. 518613104 13D Page 34 of 50 Pages
---------------------- -----------------------
280 53.6300 01/25/07
30 53.5997 01/25/07
70 53.7327 01/25/07
65 53.7328 01/25/07
180 53.6300 01/25/07
80 53.7328 01/25/07
90 53.6300 01/25/07
225 53.7327 01/25/07
40 53.7328 01/25/07
35 53.7326 01/25/07
5 53.6300 01/25/07
355 53.7327 01/25/07
335 53.6300 01/25/07
105 53.7327 01/25/07
45 53.7327 01/25/07
70 53.7327 01/25/07
120 53.7327 01/25/07
160 53.6300 01/25/07
1210 53.7327 01/25/07
110 53.7327 01/25/07
95 53.7327 01/25/07
385 53.6300 01/25/07
240 53.6300 01/25/07
430 53.7327 01/25/07
5860 53.6300 01/25/07
190 53.6300 01/25/07
90 53.7327 01/25/07
50 53.6300 01/25/07
75 53.6300 01/25/07
1110 53.7327 01/25/07
110 53.6300 01/25/07
80 53.6300 01/25/07
---------------------- -----------------------
CUSIP No. 518613104 13D Page 35 of 50 Pages
---------------------- -----------------------
155 53.6300 01/25/07
60 53.7327 01/25/07
1060 53.7327 01/25/07
655 53.7327 01/25/07
410 53.7327 01/25/07
4195 53.7327 01/25/07
205 53.7327 01/25/07
55 53.6300 01/25/07
1295 53.7327 01/25/07
110 53.7327 01/25/07
240 53.7327 01/25/07
125 53.7327 01/25/07
210 53.6300 01/25/07
640 53.5997 01/25/07
70 53.7327 01/25/07
2240 53.7327 01/25/07
50 53.7328 01/25/07
190 53.7327 01/25/07
395 53.7327 01/25/07
280 53.7327 01/25/07
130 53.7327 01/25/07
60 53.7327 01/25/07
230 53.7327 01/25/07
570 53.5997 01/25/07
230 53.7327 01/25/07
105 53.7327 01/25/07
70 53.7327 01/25/07
45 53.6300 01/25/07
75 53.7327 01/25/07
370 53.7327 01/25/07
95 53.6300 01/25/07
80 53.7328 01/25/07
---------------------- -----------------------
CUSIP No. 518613104 13D Page 36 of 50 Pages
---------------------- -----------------------
150 53.6300 01/25/07
120 53.6300 01/25/07
80 53.7328 01/25/07
110 53.7327 01/25/07
1780 53.7327 01/25/07
170 53.6300 01/25/07
35 53.7326 01/25/07
30 53.7327 01/25/07
520 53.6300 01/25/07
50 53.7328 01/25/07
95 53.7327 01/25/07
135 53.7327 01/25/07
65 53.7328 01/25/07
85 53.7327 01/25/07
85 53.7327 01/25/07
85 53.7327 01/25/07
870 53.7327 01/25/07
640 53.7327 01/25/07
115 53.7327 01/25/07
835 53.7327 01/25/07
105 53.7327 01/25/07
120 53.7327 01/25/07
260 53.6300 01/25/07
35 53.7326 01/25/07
3475 53.7327 01/25/07
1555 53.6300 01/25/07
600 53.7327 01/25/07
245 53.6300 01/25/07
35 53.7326 01/25/07
80 53.7328 01/25/07
30 53.7327 01/25/07
25 53.7328 01/25/07
---------------------- -----------------------
CUSIP No. 518613104 13D Page 37 of 50 Pages
---------------------- -----------------------
85 53.7327 01/25/07
30 53.7327 01/25/07
530 53.7327 01/25/07
220 53.7327 01/25/07
245 53.7327 01/25/07
580 53.7327 01/25/07
555 53.6300 01/25/07
1805 53.7327 01/25/07
460 53.6300 01/25/07
155 53.6300 01/25/07
80 53.6300 01/25/07
465 53.6300 01/25/07
50 53.7328 01/25/07
115 53.6300 01/25/07
210 53.6300 01/25/07
230 53.6300 01/25/07
140 53.7327 01/25/07
140 53.7327 01/25/07
140 53.7327 01/25/07
90 53.7327 01/25/07
70 53.7327 01/25/07
1305 53.5997 01/25/07
185 54.1764 01/26/07
3270 54.1764 01/26/07
845 54.1764 01/26/07
95 54.1764 01/26/07
675 54.1764 01/26/07
140 54.1764 01/26/07
180 54.1764 01/26/07
65 54.1765 01/26/07
305 54.1764 01/26/07
70 54.1764 01/26/07
---------------------- -----------------------
CUSIP No. 518613104 13D Page 38 of 50 Pages
---------------------- -----------------------
35 54.1763 01/26/07
700 54.1764 01/26/07
105 54.1764 01/26/07
70 54.1764 01/26/07
125 53.6991 01/26/07
1155 54.1764 01/26/07
95 54.1764 01/26/07
80 54.1764 01/26/07
1990 54.1764 01/26/07
110 54.1764 01/26/07
1645 54.1764 01/26/07
340 53.6991 01/26/07
945 54.1764 01/26/07
165 53.6991 01/26/07
240 53.6991 01/26/07
385 54.1764 01/26/07
170 54.1764 01/26/07
60 53.6992 01/26/07
415 54.1764 01/26/07
100 54.1764 01/26/07
105 54.1764 01/26/07
80 54.1764 01/26/07
4350 54.1764 01/26/07
500 53.6991 01/26/07
90 54.1764 01/26/07
55 54.1764 01/26/07
1290 54.1764 01/26/07
60 54.1763 01/26/07
45 54.1764 01/26/07
40 53.6990 01/26/07
345 54.1764 01/26/07
55 53.6991 01/26/07
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CUSIP No. 518613104 13D Page 39 of 50 Pages
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250 54.1764 01/26/07
145 53.6991 01/26/07
30 54.1763 01/26/07
6560 54.1764 01/26/07
85 53.6991 01/26/07
1370 54.1764 01/26/07
380 54.1764 01/26/07
140 54.1764 01/26/07
120 54.1764 01/26/07
95 53.6991 01/26/07
165 54.1764 01/26/07
515 54.1764 01/26/07
55 54.1764 01/26/07
215 53.6991 01/26/07
45 54.1764 01/26/07
205 53.6991 01/26/07
85 54.1764 01/26/07
915 54.1764 01/26/07
60 54.1763 01/26/07
60 54.1763 01/26/07
50 53.6990 01/26/07
1580 54.1764 01/26/07
7665 54.1764 01/26/07
85 54.1764 01/26/07
1060 54.1764 01/26/07
335 54.1764 01/26/07
240 53.6991 01/26/07
320 54.1764 01/26/07
860 54.1764 01/26/07
110 54.1764 01/26/07
60 53.6992 01/26/07
785 54.1764 01/26/07
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CUSIP No. 518613104 13D Page 40 of 50 Pages
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150 54.1764 01/26/07
900 53.6991 01/26/07
605 54.1764 01/26/07
315 54.1764 01/26/07
525 54.1764 01/26/07
110 54.1764 01/26/07
75 54.1764 01/26/07
40 54.1765 01/26/07
75 54.1764 01/26/07
485 53.6991 01/26/07
630 54.1764 01/26/07
345 54.1764 01/26/07
45 53.6991 01/26/07
45 53.6991 01/26/07
235 54.1764 01/26/07
50 53.6990 01/26/07
1170 53.6991 01/26/07
160 53.6991 01/26/07
790 54.1764 01/26/07
35 54.1763 01/26/07
80 53.6991 01/26/07
280 53.6991 01/26/07
430 54.1764 01/26/07
270 54.1764 01/26/07
519 54.1764 01/26/07
85 53.6991 01/26/07
705 54.1764 01/26/07
335 54.1764 01/26/07
180 54.1764 01/26/07
85 53.6991 01/26/07
50 53.6990 01/26/07
50 54.1764 01/26/07
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CUSIP No. 518613104 13D Page 41 of 50 Pages
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30 54.1763 01/26/07
830 54.1764 01/26/07
475 54.1764 01/26/07
575 54.1764 01/26/07
105 53.6991 01/26/07
490 54.1764 01/26/07
265 53.6991 01/26/07
95 54.1764 01/26/07
2140 54.1764 01/26/07
185 53.6991 01/26/07
2325 54.1764 01/26/07
50 54.1764 01/26/07
65 53.6991 01/26/07
75 54.1764 01/26/07
60 54.1763 01/26/07
65 53.6991 01/26/07
2650 54.1764 01/26/07
605 54.1764 01/26/07
65 54.1765 01/26/07
189 53.6991 01/26/07
1721 54.1764 01/26/07
195 54.1764 01/26/07
220 53.6991 01/26/07
8135 54.1764 01/26/07
70 53.6991 01/26/07
60 53.6992 01/26/07
525 54.1764 01/26/07
80 53.6991 01/26/07
110 54.1764 01/26/07
710 54.1764 01/26/07
145 53.6991 01/26/07
65 53.6991 01/26/07
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CUSIP No. 518613104 13D Page 42 of 50 Pages
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355 54.1764 01/26/07
255 54.1764 01/26/07
180 54.1764 01/26/07
235 54.1764 01/26/07
205 53.6991 01/26/07
450 54.1764 01/26/07
85 53.6991 01/26/07
300 54.1764 01/26/07
90 54.1764 01/26/07
30 54.1763 01/26/07
100 53.6991 01/26/07
145 54.1764 01/26/07
435 54.1764 01/26/07
23450 54.1764 01/26/07
50 53.6990 01/26/07
90 54.1764 01/26/07
205 54.1764 01/26/07
245 54.1764 01/26/07
50 53.6990 01/26/07
80 53.6991 01/26/07
1070 54.1764 01/26/07
100 53.6991 01/26/07
95 54.1764 01/26/07
205 54.1764 01/26/07
85 54.1764 01/26/07
570 53.6991 01/26/07
155 61.8135 01/29/07
(4500) 61.6722 01/29/07
35 60.3097 01/30/07
200 60.3096 01/30/07
30 60.3097 01/30/07
170 60.2950 01/30/07
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CUSIP No. 518613104 13D Page 43 of 50 Pages
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295 60.3096 01/30/07
(150) 60.2950 01/30/07
(90) 60.4400 01/31/07
1730 60.3400 02/01/07
7035 60.3400 02/01/07
335 60.3832 02/01/07
335 60.3832 02/01/07
140 60.3832 02/01/07
1760 60.3400 02/01/07
(1290) 60.1950 02/02/07
4574 60.1950 02/02/07
(1522) 60.1950 02/02/07
(320) 60.1610 02/02/07
(525) 60.1610 02/02/07
(1305) 60.1610 02/02/07
75 60.0113 02/05/07
75 60.0113 02/05/07
155 60.0113 02/05/07
(105) 60.0000 02/05/07
(460) 59.9396 02/06/07
235 59.9660 02/06/07
5 59.9000 02/07/07
20 59.9000 02/07/07
(100) 59.7297 02/08/07
(190) 59.7297 02/08/07
(15) 59.7300 02/08/07
(295) 59.7234 02/09/07
5 59.7500 02/09/07
175 59.6200 02/12/07
(700) 59.6220 02/12/07
495 59.5724 02/13/07
(65) 59.5900 02/13/07
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CUSIP No. 518613104 13D Page 44 of 50 Pages
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355 59.5724 02/13/07
30 59.5723 02/13/07
(30) 59.5900 02/13/07
120 59.6400 02/14/07
(10) 59.5500 02/14/07
(45) 59.5400 02/15/07
10 59.6000 02/15/07
SELECT OFFSHORE ADVISORS, LLC
51500 51.2500 12/15/06
1300 50.2000 12/20/06
6500 49.9800 12/20/06
7614 49.1757 12/21/06
1159 48.9500 12/21/06
29000 49.7545 12/21/06
21900 50.0860 12/21/06
58 49.0500 12/22/06
2318 49.0500 12/22/06
1738 48.8000 12/22/06
6213 49.4955 12/26/06
5511 48.6300 01/03/07
3189 48.6300 01/03/07
51819 48.4000 01/08/07
4155 48.3729 01/08/07
(2365) 60.3400 02/01/07
(1105) 60.3400 02/01/07
960 53.8349 01/22/07
32120 54.6708 01/23/07
(8160) 60.3400 02/01/07
(3810) 60.3400 02/01/07
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CUSIP No. 518613104 13D Page 45 of 50 Pages
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SCHEDULE B
DIRECTORS AND OFFICERS OF SELECT EQUITY GROUP, INC.
NAME AND POSITION PRINCIPAL OCCUPATION PRINCIPAL BUSINESS ADDRESS
George S. Loening President and Treasurer of 380 Lafayette Street
Director Select Equity Group, Inc. 6th Floor
New York, New York 10003
Amor H. Towles Vice President and 380 Lafayette Street
Secretary of Select Equity 6th Floor
Group, Inc. New York, New York 10003
James R. Berman Chief Compliance Officer 380 Lafayette Street
and General Counsel 6th Floor
New York, New York 10003
Evan Guillemin Chief Operating Officer 380 Lafayette Street
and Chief Financial Officer 6th Floor
New York, New York 10003
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CUSIP No. 518613104 13D Page 46 of 50 Pages
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EXHIBIT INDEX
Exhibit Page
------- ----
1. Joint Filing Agreement by and among Select Equity, Select
Offshore and George S. Loening, dated February 21, 2007. 47
2. Letter from Select Equity to the Independent Members of the
Board of Directors of the Issuer, dated February 21, 2007. 48 to 50
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CUSIP No. 518613104 13D Page 47 of 50 Pages
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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 February
21, 2007 (including amendments thereto) with respect to the Common Stock of
Laureate Education, Inc. This Joint Filing Agreement shall be filed as an
Exhibit to such Statement.
Dated: February 21, 2007
SELECT EQUITY GROUP, INC.
By:/s/ George S. Loening
-------------------------------------
Name: George S. Loening
Title: President
SELECT OFFSHORE ADVISORS, LLC
By:/s/ George S. Loening
-------------------------------------
Name: George S. Loening
Title: Manager
/s/ George S. Loening
----------------------------------------
GEORGE S. LOENING
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CUSIP No. 518613104 13D Page 48 of 50 Pages
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SELECT EQUITY LETTERHEAD
February 21, 2007
Ms. Isabel Aguilera
Mr. Wolf H. Hengst
Mr. James H. McGuire
Mr. John A. Miller
Mr. R. William Pollock
The Honorable Richard W. Riley
Mr. David A. Wilson
c/o Mr. Robert W. Zentz, Secretary of The Board of Directors
Laureate Education, Inc.
1001 Fleet Street
Baltimore, MD 21202-4382
RE: LAUREATE EDUCATION, INC.
Dear Independent Member of the Board:
Select Equity Group, Inc. and its affiliates are significant and long-term
shareholders of Laureate Education, Inc. ("Laureate," or the "Company"). We
began investing in the Company in 2003 and currently own over 3.6 million
shares of common stock, making us the Company's third largest outside
shareholder.
We have admired the management of the Company over the last four years, but we
have significant reservations about the proposed management-led buyout
transaction at $60.50 per share. This offer is grossly inadequate and the
process by which the deal was proposed and evaluated was flawed by clear
conflicts of interest.
If the terms of the Merger Agreement are not amended to better reflect the true
value of the Company, Select Equity will not support the transaction.
A. PEER ANALYSIS. Currently, Laureate's US peers - as defined in the Company's
2006 Proxy Statement - trade at an average of 21 times 2008 estimated earnings.
Three of the six companies you compare Laureate to, however, have FLAT TO
DECLINING EARNINGS, and the only company with revenue and earnings growth rates
consistently approaching Laureate's, Strayer Education, trades at 24 times 2008
estimated earnings. The current deal, at $60.50, values Laureate at 19.5 times
2008 estimated earnings, nearly 10% BELOW that of its underperforming peers and
19% BELOW Strayer.
We think there is a clear argument to be made, however, that LAUR should trade
at a premium to the US-based education companies. CEO Doug Becker has explained
---------------------- -----------------------
CUSIP No. 518613104 13D Page 49 of 50 Pages
---------------------- -----------------------
publicly the superior qualities of Laureate's business model versus its American
peers, including: (i) International higher education markets are growing two to
four times faster than the US market; (ii) A four to six year average length of
stay per enrolled international student versus one to two years in the US; (iii)
A lower attrition rate for international students; (iv) The absence of Title IV
funding/regulatory issues internationally; (v) A two to three times wage premium
for college graduates internationally versus domestically; (vi) Greater tuition
pricing power internationally at one and a half to two times the rate of
inflation; (vii) Virtually no online competitors internationally; (viii) Public
higher education systems abroad that cannot afford to expand; and (ix) An
untapped international adult education market.
Additionally, there is, as described by Mr. Becker, tremendous franchise value
as the largest (and arguably the only) international network of universities.
Laureate spent nearly a decade acquiring and integrating best-in-class
universities in 15 countries, creating a network that would be extremely
difficult--if not impossible--to replicate.
B. EARNINGS ANALYSIS. CFO Rosemarie Mecca said at a recent investor conference:
"Our vision for 2010 has remained unchanged for the last several years. By 2010,
it's our expectation that we have at least $2 billion in revenue and operating
margin[s] somewhere around 20%, and EPS of about $5.00 per share. We're
generally going to see between 15% and 20% earnings growth beyond 2010 to 2015.
And I can tell you that Doug and I spend a lot of our time thinking about and
working on the path beyond 2010."
Using the $5.00 per share figure projected for 2010 and applying the 24 times
forward multiple currently placed on Strayer Education, Laureate, by the summer
of 2009, would trade at almost double the proposed transaction value. Using a
conservative discount rate of 15%, Laureate is worth substantially more than
$60.50 per share. And there's upside to our forecast, as Mr. Becker has
discussed the possibility of achieving that $5.00 EPS benchmark earlier than
2010 if even a reasonable number of the accretive acquisitions currently in the
pipeline in China and Brazil are completed.
C. ANALYSIS OF THE EDMC TRANSACTION. Some have undoubtedly tried to persuade you
that the $60.50 per share price compares favorably to the valuation multiple at
which Education Management Corporation (EDMC) was taken private in June 2006.
But comparing EDMC to Laureate is inappropriate. First, the comparison does not
accurately reflect the life cycle of capital deployment and harvest for each
franchise. EDMC was a more mature business at the time of its acquisition; its
capital expenditures had actually fallen by nearly 20% from fiscal years 2003 to
2006. As evidenced by repayment of debt, significant cash accumulation on the
balance sheet, capital spending declines, and public discussion of stock
buybacks and/or dividends, we can infer that either returns on additional
capital deployed had become less attractive or fewer opportunities were present
for EDMC.
By contrast, Laureate sees, in the words of Mr. Becker, "an almost inexhaustible
array of investment opportunities" with internal rates of return in the 40%
range in Latin America and mid-20% range in Europe, as well as numerous high
return opportunities in Asia. As evidence, Laureate's capital expenditures
approximately doubled from 2003-2006, contrasting sharply with EDMC's spending
trends.
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CUSIP No. 518613104 13D Page 50 of 50 Pages
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Second, should your advisors encourage you to compare multiples of EBITDA,
remember that Laureate's EBITDA is significantly understated, as the Company has
been rapidly investing over the past few years to build its global platform. Mr.
Becker has publicly discussed "lots of advanced investment in infrastructure,
product development, new country entry, management additions," and other
investments needed "to grow the business at a 15%-20% earnings growth rate"
after 2010. For example, of Laureate's 58 campuses, only 25 are considered
mature, 25 are developing, and eight are less than two years old. Company
management has discussed how the operating margins of fully performing campuses
can reach 40%, yet the existing campus network has operating margins of 18%. It
should be noted that EDMC did not have such a high proportion of newer campuses
(nor did it maintain a full-time M&A team in countries without campuses, as
Laureate does). Additionally, Laureate's online business has undergone
significant investment since the purchase of Walden, and management has told the
investment community to expect online operating margins to reach the mid-20%
range in a few years, up from current 19% margins. All told, Laureate is "in the
early days of growing [the] business," according to Mr. Becker, pressuring
EBITDA margins near-term while creating significant earnings power down the
road.
Finally, if you are forced to compare the EDMC transaction with the proposal of
the investment group led by Mr. Becker, a P/E multiple is a better valuation
metric. After all, the Company pays minimal taxes today in most of the
international markets in which it operates. The buyout of EDMC valued that
company at 21.5 times calendar 2007 estimated earnings on June 1, 2006. The
Laureate deal, expected to close in the summer of 2007, values Laureate at 19.5
times calendar 2008 estimated earnings, or 9% LESS THAN the EDMC multiple. For
the reasons discussed above, Laureate demands a higher multiple than EDMC.
* * *
Our reservations about this transaction extend beyond price to the process by
which the deal was proposed and evaluated. There is an inherent conflict of
interest in a management-led buyout that arises from interested management, in
their role as part of the buying group, trying to get the lowest price for the
company and a greater stake in the equity of the acquisition vehicle. Thus, in
dealing with private equity suitors, interested members of management, by
definition, act against the interests of the Company's other shareholders, who
are seeking the highest price possible in order to maximize the value of their
investment. In this case, the Special Committee's appointment of an interested
member of management (Mr. Becker) to solicit offers from other potential suitors
created an obvious conflict of interest between public shareholders and the
buyout group.
We are concerned that the evident conflicts in this case have resulted in a deal
that is unfair to long-term shareholders and we urge the Board to reconsider. As
stated above, if the terms of the Merger Agreement are not amended to better
reflect the true value of the Company, Select Equity will not support the
transaction.
Sincerely,
/s/ John D. Britton /s/ James R. Berman
-------------------- -------------------
John D. Britton James R. Berman
Principal General Counsel