SC 13D 1 sc13d_shopko.txt SHOPKO, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 13D Under the Securities Exchange Act of 1934 (AMENDMENT NO. ___ )* SHOPKO STORES, INC. (Name of Issuer) COMMON STOCK, PAR VALUE $0.01 SHARE (Title of Class of Securities) 824911101 (CUSIP Number) NORRIS NISSIM, ESQ. JOHN A. LEVIN & CO., INC. ONE ROCKEFELLER PLAZA NEW YORK, NEW YORK 10020 TEL. NO.: (212) 332-8400 (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) with a copy to JOHN C. KENNEDY, ESQ. PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP 1285 AVENUE OF THE AMERICAS NEW YORK, NEW YORK 10019-6064 JULY 14, 2005 (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 which is the subject to 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 . *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 purposes 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.) CUSIP NO. 824911101 PAGE 2 OF 18 SCHEDULE 13D -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON Levco Alternative Fund, Ltd. -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_] (b) [X] -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS OO -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [_] -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OR ORGANIZATION Cayman Islands -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 1,521,800 NUMBER OF ---------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY 0 OWNED BY ---------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING 1,521,800 PERSON ---------------------------------- WITH 10 SHARED DISPOSITIVE POWER 0 -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,521,800 -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [X] -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 5.1% -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON CO -------------------------------------------------------------------------------- CUSIP NO. 824911101 PAGE 3 OF 18 SCHEDULE 13D -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON Purchase Associates, L.P. -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_] (b) [X] -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS OO -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [_] -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OR ORGANIZATION Delaware -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 93,400 NUMBER OF ---------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY 0 OWNED BY ---------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING 93,400 PERSON ---------------------------------- WITH 10 SHARED DISPOSITIVE POWER 0 -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 93,400 -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [X] -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.3% -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON PN -------------------------------------------------------------------------------- CUSIP NO. 824911101 PAGE 4 OF 18 SCHEDULE 13D -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON Purchase Associates II, L.P. -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_] (b) [X] -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS OO -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [_] -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OR ORGANIZATION Delaware -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 129,000 NUMBER OF ---------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY 0 OWNED BY ---------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING 129,000 PERSON ---------------------------------- WITH 10 SHARED DISPOSITIVE POWER 0 -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 129,000 -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [X] -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.4% -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON PN -------------------------------------------------------------------------------- CUSIP NO. 824911101 PAGE 5 OF 18 SCHEDULE 13D -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON Alvarado Capital Partners, L.P. -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_] (b) [X] -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS OO -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [_] -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OR ORGANIZATION Delaware -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 12,000 NUMBER OF ---------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY 0 OWNED BY ---------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING 12,000 PERSON ---------------------------------- WITH 10 SHARED DISPOSITIVE POWER 0 -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 12,000 -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [X] -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) less than 0.1% -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON PN -------------------------------------------------------------------------------- CUSIP NO. 824911101 PAGE 6 OF 18 SCHEDULE 13D -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON Levco GP, Inc. -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_] (b) [X] -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS Not Applicable -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [_] -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OR ORGANIZATION Cayman Islands -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 234,400 NUMBER OF ---------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY 0 OWNED BY ---------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING 234,400 PERSON ---------------------------------- WITH 10 SHARED DISPOSITIVE POWER 0 -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 234,400 -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [X] -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.7% -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON CO -------------------------------------------------------------------------------- CUSIP NO. 824911101 PAGE 7 OF 18 SCHEDULE 13D -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON John A. Levin & Co., Inc. -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_] (b) [X] -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS OO -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [_] -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OR ORGANIZATION Delaware -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 1,818,400 NUMBER OF ---------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY 0 OWNED BY ---------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING 1,818,400 PERSON ---------------------------------- WITH 10 SHARED DISPOSITIVE POWER 0 -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,818,400 -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [_] -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 6.0% -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON IA -------------------------------------------------------------------------------- CUSIP NO. 824911101 PAGE 8 OF 18 SCHEDULE 13D -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON BKF Capital Group, Inc. -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_] (b) [X] -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS Not Applicable -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [_] -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OR ORGANIZATION Delaware -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 1,818,400 NUMBER OF ---------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY 0 OWNED BY ---------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING 1,818,400 PERSON ---------------------------------- WITH 10 SHARED DISPOSITIVE POWER 0 -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,818,400 -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [_] -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 6.0% -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON CO -------------------------------------------------------------------------------- CUSIP NO. 824911101 PAGE 9 OF 18 This Schedule 13D is being filed on behalf of each of the following persons (each a "Reporting Person" and collectively, the "Reporting Persons"): (i) Levco Alternative Fund, Ltd., a Cayman Islands company ("Levco"), (ii) Purchase Associates, L.P., a Delaware limited partnership ("Purchase"), (iii) Purchase Associates II, L.P., a Delaware limited partnership ("Purchase II"), (iv) Alvarado Capital Partners, L.P., a Delaware limited partnership ("Alvarado"), (v) Levco GP, Inc., a Delaware corporation ("Levco GP"), (vi) John A. Levin & Co., Inc., a Delaware corporation ("Levin & Co.") and (vii) BKF Capital Group, Inc., a Delaware corporation ("BKF"). Item 1. SECURITY AND ISSUER. This Statement on Schedule 13D (the "Schedule 13D") relates to the Common Stock, par value $0.01 per share (the "Common Stock"), of ShopKo Stores, Inc. (the "Issuer"), a Wisconsin corporation. The address of the principal executive office of the Issuer is 700 Pilgrim Way, Green Bay, Wisconsin, 54304. Item 2. IDENTITY AND BACKGROUND. (a), (b), (c) and (f). BKF is a public company that operates entirely through Levin & Co. and its related entities. BKF is the sole shareholder of Levin Management Co., which in turn is the sole shareholder of Levin & Co., which in turn is the sole shareholder of Levco GP. The principal business of Levco GP is to act as general partner of investment partnerships, including Purchase, Purchase II and Alvarado. Levin & Co. is an investment adviser registered under the Investment Advisers Act of 1940, as amended, that specializes in managing equity portfolios for institutional and individual investors primarily in the United States. Levin & Co. acts as an investment adviser to Levco and manages a separate client account which holds the Issuer's Common Stock. The principal business of Levco, Purchase, Purchase II and Alvarado is to acquire, hold and dispose of investments in various companies. Levco is a Cayman Islands company. Purchase, Purchase II and Alvarado are Delaware limited partnerships. Levco GP, Levin & Co. and BKF are Delaware corporations. The principal business address of each of the Reporting Persons, other than Levco, is One Rockefeller Plaza, New York, New York, 10020. The principal business address of Levco is BISYS Hedge Fund Services (Cayman) Limited, c/o Q&H Corporate Services Ltd., Harbour Centre, George Town, Grand Cayman, Cayman Island. (i) The name, business address and principal occupation or employment of each director and controlling person of Levco are as follows:

CUSIP NO. 824911101 PAGE 10 OF 18 (ii) The name, business address and principal occupation or employment of the controlling person of each of Purchase, Purchase II and Alvarado are as follows:

(iii) The name, business address and principal occupation or employment of each executive officer and controlling person of Levco GP are as follows:

(iv) The name, business address and principal occupation or employment of each director, executive officer and controlling person of Levin & Co. are as follows:

CUSIP NO. 824911101 PAGE 11 OF 18

(v) The name, business address and principal occupation or employment of each director, executive officer and controlling person of BKF are as follows:

CUSIP NO. 824911101 PAGE 12 OF 18

(d) and (e). During the past five years, neither any Reporting Person nor, to the best knowledge of each Reporting Person, any individual otherwise identified in response to Item 2, has been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or was a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of which any such person 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 source of funds for the acquisitions by Levco was the contributions from its shareholders and/or proceeds from investments from such contributions. The source of funds for the acquisitions by Purchase, Purchase II and Alvarado was the contributions from its partners and/or proceeds from investments from such contributions. The acquisitions attributed to Levin & Co. were made by each of Levco, Purchase, Purchase II and Alvarado and an additional managed client account. The source of funds for the acquisitions by the managed client account was the capital of the client. The aggregate purchase price of the 1,521,800 shares of Common Stock owned by Levco was $36,784,376.12. The aggregate purchase price of the 93,400 shares of Common Stock owned by Purchase was $2,258,376.65. The aggregate purchase price of the 129,000 shares of Common Stock owned by Purchase II was $3,117,169.17. The aggregate purchase price of the 12,000 shares of Common Stock owned by Alvarado was $292,193.55. The aggregate purchase price of the 1,818,400 shares of Common Stock beneficially owned by Levin & Co. was $43,951,634.40. Item 4. PURPOSE OF TRANSACTION. On July 14, 2005, the Reporting Persons acquired beneficial ownership of more than 5% of the Issuer's Common Stock. The Reporting Persons have purchased the Common Stock for investment purposes. The present intention of the Reporting Persons is to oppose the Issuer's proposed merger (the "Merger") with Badger Retail Holding, Inc. and Badger Acquisition Corp., affiliates of Goldner Hawn Johnson & Morrison Incorporated, a Minneapolis-based private equity firm. The Reporting Persons are evaluating the option of soliciting proxies in opposition to the Merger and are considering all actions and alternatives available to them. The Reporting Persons have attached as Exhibit 2 to this Schedule 13D a letter, dated July 21, 2005, from Purchase Associates LP, Levco Alternative Fund, Ltd. and certain related entities to the Board of Directors of the Issuer which states, among other things, that they oppose the Merger, as it in not in the best interest of the shareholders, and intend to vote against the Merger. The Reporting Persons intend to evaluate the Issuer's business and prospects and upon future developments (including market prices for the Common Stock, availability and alternative uses of funds, conditions in the securities markets and general economic and industry conditions), the Reporting Persons CUSIP NO. 824911101 PAGE 13 OF 18 may acquire additional shares of Common Stock, sell all or a portion of its shares of Common Stock, now owned or hereafter acquired, or maintain its position at current levels. In addition, the Reporting Persons may formulate other purposes, plans or proposals regarding the Issuer or any of its securities to the extent deemed advisable in light of general investment and trading policies, market conditions or other factors. SECURITY HOLDERS ARE ADVISED TO READ THE PROXY STATEMENT AND OTHER DOCUMENTS RELATED TO SOLICITATION OF PROXIES BY THE REPORTING PERSONS WHEN AND IF THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. WHEN AND IF COMPLETED, A DEFINITIVE PROXY STATEMENT AND A FORM OF PROXY WILL BE MAILED TO STOCKHOLDERS OF THE ISSUER AND WILL BE AVAILABLE AT NO CHARGE AT THE SECURITIES AND EXCHANGE COMMISSION'S WEBSITE AT HTTP://WWW.SEC.GOV. Except as described above, no Reporting Person or any individual otherwise identified in Item 2 of this Schedule 13D has any present plans or proposals which relate to or would result in: (a) the acquisition by any person of additional securities of the Issuer, or the disposition of securities of the Issuer; (b) an extraordinary corporate transaction, such as a merger, reorganization or liquidation, involving the Issuer or any of its subsidiaries; (c) a sale or transfer or a material amount of assets of the Issuer or of any of its subsidiaries; (d) any change in the present board of directors or management of the Issuer, including any plans or proposals to change the number or term of directors or to fill any existing vacancies on the board; (e) any material change in the present capitalization or dividend policy of the Issuer; (f) any other material change in the Issuer's business or corporate structure; (g) changes in the Issuer's charter, bylaws or instruments corresponding thereto or other actions which may impede the acquisition of control of the Issuer by any person; (h) causing a class of securities of the Issuer to be delisted from a national securities exchange or to cease to be authorized to be quoted in an inter-dealer quotation system of a registered national securities association; (i) a class of equity securities of the Issuer becoming eligible for termination of registration pursuant to Section 12(g)(4) of the Securities Exchange Act of 1934; or (j) any action similar to any of those enumerated above. Item 5. INTEREST IN SECURITIES OF THE ISSUER. (a) and (b). The beneficial ownership and ownership percentages set forth herein are as of July 18, 2005. All ownership percentages set forth herein assume that there are 30,113,992 Shares outstanding, based on the total number of shares reported in the Quarterly Report on Form 10-Q of the Issuer for the quarter ending April 30, 2005 to be outstanding as of May 27, 2005. The responses to Items 7, 8, 9, 10, 11 and 13 of the inside cover pages of this Schedule 13D are hereby incorporated by reference in response to this Item 5. BKF is the ultimate sole shareholder of Levin & Co., which in turn is the sole shareholder of Levco GP. Levco GP is the managing general partner of each of Purchase, Purchase II and Alvarado. Levin & Co. is the investment adviser to Levco and manages a separate client account which owns shares of the Issuer's Common Stock. (c) (i) During the past 60 days, Levco(1) has purchased shares of Common Stock in open market transactions on the New York Stock Exchange as follows: SHARES DATE PURCHASED PRICE ---- --------- ----- 06-03-05 115,500 $23.75 06-06-05 468,300 $23.81 06-07-05 62,700 $23.98 CUSIP NO. 824911101 PAGE 14 OF 18 SHARES DATE PURCHASED PRICE ---- --------- ----- 06-09-05 8,400 $24.08 06-09-05 28,300 $24.04 06-14-05 54,000 $23.95 07-01-05 4,600 $24.24 07-05-05 53,600 $24.50 07-06-05 80,700 $24.55 07-07-05 63,200 $24.40 07-08-05 84,300 $24.44 07-11-05 40,000 $24.41 07-12-05 189,300 $24.52 07-14-05 94,300 $24.39 07-15-05 103,400 $24.44 07-18-05 71,200 $24.70 ____________ (1) Levin & Co. and BKF also report beneficial ownership of the shares of Common Stock held by Levco. (ii) During the past 60 days, Purchase(2) has purchased shares of Common Stock in open market transactions on the New York Stock Exchange as follows: SHARES DATE PURCHASED PRICE ---- --------- ----- 06-03-05 6,900 $23.75 06-06-05 28,000 $23.81 06-07-05 3,800 $23.98 06-09-05 500 $24.08 06-09-05 1,700 $24.04 06-14-05 3,200 $23.95 07-01-05 300 $24.24 07-05-05 4,600 $24.50 07-06-05 4,700 $24.55 07-07-05 3,900 $24.40 07-08-05 5,200 $24.44 07-11-05 2,500 $24.41 07-12-05 11,600 $24.52 07-14-05 5,800 $24.39 07-15-05 6,300 $24.44 07-18-05 4,400 $24.70 ____________ (2) Levco GP, Levin & Co. and BKF also report beneficial ownership of the shares of Common Stock held by Purchase. (iii) During the past 60 days, Purchase II (3) has purchased shares of Common Stock in open market transactions on the New York Stock Exchange as follows: SHARES DATE PURCHASED PRICE ---- --------- ----- 06-03-05 10,000 $23.75 06-06-05 40,700 $23.81 06-07-05 5,400 $23.98 06-09-05 700 $24.08 06-09-05 2,400 $24.04 06-14-05 4,700 $23.95 07-01-05 400 $24.24 07-05-05 3,400 $24.50 07-06-05 6,600 $24.55 07-07-05 5,300 $24.40 07-08-05 7,100 $24.44 07-11-05 3,400 $24.41 07-12-05 16,100 $24.52 CUSIP NO. 824911101 PAGE 15 OF 18 SHARES DATE PURCHASED PRICE ---- --------- ----- 07-14-05 8,000 $24.39 07-15-05 8,800 $24.44 07-18-05 6,000 $24.70 ____________ (3) Levco GP, Levin & Co. and BKF also report beneficial ownership of the shares of Common Stock held by Purchase II. (iv) During the past 60 days, Alvarado(4) has purchased shares of Common Stock in open market transactions on the New York Stock Exchange as follows: SHARES DATE PURCHASED PRICE ---- --------- ----- 07-01-05 5,500 $24.24 07-11-05 2,500 $24.41 07-14-05 4,000 $24.46 ____________ (4) Levco GP, Levin & Co. and BKF also report beneficial ownership of the shares of Common Stock held by Alvarado. (v) During the past 60 days, Levin & Co.(5) has purchased shares of Common Stock in open market transactions on the New York Stock Exchange as follows: SHARES DATE PURCHASED PRICE ---- --------- ----- 06-03-05 5,700 $23.75 06-06-05 23,000 $23.81 06-07-05 3,100 $23.98 06-09-05 400 $24.08 06-09-05 1,400 $24.04 06-14-05 2,200 $23.95 07-01-05 200 $24.24 07-07-05 2,600 $24.40 07-08-05 3,400 $24.44 07-11-05 1,600 $24.41 07-12-05 7,700 $24.52 07-14-05 3,800 $24.39 07-15-05 4,200 $24.44 07-18-05 2,900 $24.70 ____________ (5) BKF also report beneficial ownership of the shares of Common Stock held by Levin & Co. (e) Not applicable. Item 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER. Not applicable. Item 7. MATERIAL TO BE FILED AS EXHIBITS. Exhibit 1: Joint Filing Agreement, dated July 21, 2005, among the Reporting Persons. CUSIP NO. 824911101 PAGE 16 OF 18 Exhibit 2: Letter, dated July 21, 2005. CUSIP NO. 824911101 PAGE 17 OF 18 SIGNATURE After reasonable inquiry and to the best of its knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct. Dated: July 21, 2005 LEVCO ALTERNATIVE FUND, LTD. By: John A. Levin & Co., Inc., its investment adviser By: /s/ Norris Nissim ------------------------------------------------ Name: Norris Nissim Title: Vice President and General Counsel PURCHASE ASSOCIATES L.P. By: Levco GP, Inc., its managing general partner By: /s/ Norris Nissim ------------------------------------------------ Name: Norris Nissim Title: Vice President and General Counsel PURCHASE ASSOCIATES II, L.P. By: Levco GP, Inc., its managing general partner By: /s/ Norris Nissim ------------------------------------------------ Name: Norris Nissim Title: Vice President and General Counsel ALVARADO CAPITAL PARTNERS, L.P. By: Levco GP, Inc., its managing general partner By: /s/ Norris Nissim ------------------------------------------------ Name: Norris Nissim Title: Vice President and General Counsel LEVCO GP, INC. By: /s/ Norris Nissim ------------------------------------------------ Name: Norris Nissim Title: Vice President and General Counsel CUSIP NO. 824911101 PAGE 18 OF 18 JOHN A. LEVIN & CO., INC. By: /s/ Norris Nissim ------------------------------------------------ Name: Norris Nissim Title: Vice President and General Counsel BKF CAPITAL GROUP, INC. By: /s/ Norris Nissim ------------------------------------------------ Name: Norris Nissim Title: Vice President and General Counsel

SHOPKO STORES INC SC 13D