UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
Cellstar Corporation
(Name of Issuer)
COMMON STOCK
(Title of Class of Securities)
150925204
(CUSIP Number)
Timothy S. Durham
111 Monument Circle
Suite 4800
Indianapolis, Indiana 46204-2415
(317) 237-4122
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
February 23, 2006
(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 ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d 1(g), check the
following box [ ].
NOTE: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 13d-7 for other parties
to whom copies are to be sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
SCHEDULE 13D
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CUSIP No. 150925204
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1. NAME OF REPORTING PERSON:
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON (ENTITIES ONLY)
Timothy S. Durham
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
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3. SEC USE ONLY
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4. SOURCE OF FUNDS
PF
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5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [_]
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6. CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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NUMBER OF 7. SOLE VOTING POWER
SHARES 782,500
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BENEFICIALLY 8. SHARED VOTING POWER
OWNED BY 0
-----------------------------------
EACH REPORTING 9. SOLE DISPOSITIVE POWER
PERSON 782,500
-----------------------------------
WITH 10. SHARED DISPOSITIVE POWER
0
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
782,500
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12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES [ ]
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.8%
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14. TYPE OF REPORTING PERSON
IN
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SCHEDULE 13D
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CUSIP No. 150925204
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1. NAME OF REPORTING PERSON:
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON (ENTITIES ONLY)
Patrick J. O'Donnell
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
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3. SEC USE ONLY
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4. SOURCE OF FUNDS
PF
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5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [_]
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6. CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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NUMBER OF 7. SOLE VOTING POWER
SHARES 418,400
-----------------------------------
BENEFICIALLY 8. SHARED VOTING POWER
OWNED BY 0
-----------------------------------
EACH REPORTING 9. SOLE DISPOSITIVE POWER
PERSON 418,400
-----------------------------------
WITH 10. SHARED DISPOSITIVE POWER
0
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
418,400
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12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES [ ]
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.0%
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14. TYPE OF REPORTING PERSON
IN
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SCHEDULE 13D
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CUSIP No. 150925204
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1. NAME OF REPORTING PERSON:
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON (ENTITIES ONLY)
Henri B. Najem, Jr.
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
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3. SEC USE ONLY
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4. SOURCE OF FUNDS
PF
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5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [_]
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6. CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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NUMBER OF 7. SOLE VOTING POWER
SHARES 78,100
-----------------------------------
BENEFICIALLY 8. SHARED VOTING POWER
OWNED BY 0
-----------------------------------
EACH REPORTING 9. SOLE DISPOSITIVE POWER
PERSON 78,100
-----------------------------------
WITH 10. SHARED DISPOSITIVE POWER
0
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
78,100
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12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES [ ]
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.4%
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14. TYPE OF REPORTING PERSON
IN
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SCHEDULE 13D
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CUSIP No. 150925204
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ITEM 1. Security and Issuer
This Schedule 13D relates to the common shares, $0.01 par value (the
"Shares"), of Cellstar Corporation, a Delaware corporation (the "Issuer").
The address of the principal executive offices of the Issuer is 601 S. Royal
Lane, Carrollton, Texas 75019.
ITEM 2. Identity and Background
The persons filing this statement are Timothy S. Durham ("Durham"), Patrick J.
O'Donnell ("O'Donnell"), and Henri B. Najem, Jr. ("Najem").
Mr. Durham is a citizen of the United States and his principal address is 111
Monument Circle, Suite 4800, Indianapolis, Indiana 46204. Mr. Durham serves as
the Chairman and Chief Executive Officer of Obsidian Enterprises, Inc. and as
Chairman of Fair Holdings, Inc. The address of the principal offices of Obsidian
Enterprises, Inc. and Fair Holdings, Inc. is 111 Monument Circle, Suite 4800,
Indianapolis, Indiana 46204.
Mr. O'Donnell is a citizen of the United States and his principle address is 200
West Adams Street, Chicago, Illinois, 60606. O'Donnell is retired from the UBS
Investment Bank where he was the CIO and a member of its Management Board.
Mr. Najem is a citizen of the United States and his principal address is 11699
Fall Creek Road, Indianapolis, Indiana 46256. Mr. Najem owns Bella Vita
restaurant. The address of the principal office of Bella Vita is 11699 Fall
Creek Road, Indianapolis, IN 46256.
During the last five years, none of the Reporting Persons (i) has been convicted
in a criminal proceeding (excluding traffic violations or similar misdemeanors)
or (ii) was 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 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.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
The aggregate purchase price for the 1,279,000 shares purchased by the
Reporting Entities was $1,066,461. The source of funds for the purchases was
personal funds for Mr. Durham, Mr. O'Donnell, and Mr. Najem.
ITEM 4. PURPOSE OF TRANSACTION.
Each of the Reporting Entities acquired beneficial ownership of the shares of
Common Stock to which this statement relates for the purpose of investment and
to gain a significant equity interest in Cellstar.
Each of the Reporting Entities may acquire additional shares or other securities
of Cellstar or sell or otherwise dispose of any or all of the shares or other
securities of Cellstar they beneficially own.
The Reporting Entities may engage in discussions with the management and members
of the Board of Directors of Cellstar concerning the business, operations and
future plans of Cellstar.
The Reporting Entities may also consider other actions to maximize stockholder
value including, without limitation:
o Proposing an extraordinary corporate transaction, such as a merger,
reorganization or liquidation, involving Cellstar or any of its
subsidiaries; and
o Proposing change in the present Board of Directors or management of
Cellstar.
Other than described above, none of the Reporting Entities currently have any
plans or proposals which relate to, or may result in, any of the matters listed
in Items 4(a) - (j) of Schedule 13D (although they reserve the right to develop
such plans).
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
(a) As of the close of business on February 23, 2006, the Reporting Persons
may be deemed to beneficially own, in the aggregate, 1,279,000 shares of
Common Stock, representing approximately 6.0% of the Issuer's outstanding
shares of Common Stock (based on the 20,830,529 shares stated to be
outstanding as of February 8, 2006 in the Issuer's Annual Report on
Form 10-K for the year ended November 30, 2005, filed with the Securities
and Exchange Commission).
(b) Mr. Durham has sole voting and sole dispositive power with respect
to 782,500 shares. Mr. O'Donnell has sole voting and sole dispositive
power with respect to 418,400 shares. Mr. Najem has sole voting and sole
dispositive power with respect to 78,100 shares.
(c) The following table presents information on securities transactions
within the past sixty days. All of the transactions were open market
transactions.
Shareholder Date Price Per Transaction No. of Shares
Share ($)
Timothy S. Durham 02/14/2006 $2.47 Purchase 10,000
Timothy S. Durham 02/23/2006 $2.33 Purchase 20,000
Item 6. Contracts, Arrangements, Understandings or Relationship with Respect to
Securities of the Issuer
Except as described herein, neither of the Registrants has any contracts,
arrangements, understandings or relationships (legal or otherwise) with any
person with respect to any securities of the Issuer, including but not limited
to the transfer or voting of any of the securities, finder's fees, joint
ventures,loan or option arrangements, puts or calls, guarantees of profits,
division of profits or losses, or the giving or withholding of proxies.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
Exhibit A: Joint Filing Agreement.
SIGNATURES
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: February 23, 2006
/s/ Timothy S. Durham
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Timothy S. Durham
/s/ Patrick J. O'Donnell
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Patrick J. O'Donnell
/s/ Henri B. Najem, Jr.
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Henri B. Najem, Jr.
SCHEDULE 13D
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CUSIP No. 150925204
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EXHIBIT INDEX
Exhibit No. Description
A Joint Filing Agreement.
SCHEDULE 13D
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CUSIP No. 150925204
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EXHIBIT B
Joint Filing Agreement
Each of the undersigned hereby agrees and consents to the filing of a single
Schedule 13D and any and all future amendments thereto with the Securities and
Exchange Commission on behalf of the undersigned and the other persons listed in
Item 2 of the Schedule 13D in connection with their beneficial ownership of
securities of Cellstar Corporation.
IN WITNESS WHEREOF, the parties have executed this Joint Filing Agreement
on February 23, 2006.
/s/ Timothy S. Durham
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Timothy S. Durham
/s/ Patrick O'Donnell
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Patrick O'Donnell
/s/ Henri B. Najem, Jr.
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Henri B. Najem, Jr.