Limited Faces Lawsuits

Shareholders of Intimate Brands Inc. have filed suit against the Limited Inc. (Columbus, Ohio), saying that the Limited's offer to buy back the rest of the owner of lingerie giant Victoria's Secret is “inadequate and unfair.”

The Limited owns 84 percent of Intimate Brands, which also owns the Bath & Body Works brand and White Barn Candle Co. On February 4, the retailer launched an exchange offer worth about $1.5 billion for the 16 percent of Intimate Brands it spun off six years ago.

The Limited, in a Securities and Exchange Commission filing, said that since February 5, a dozen lawsuits had been filed in Delaware “on behalf of a purported class of public shareholders of Intimate Brands Inc.” A similar action was also filed in Ohio, the Limited said.

The Limited said in the filing that the allegations are without merit, and it intends to defend against them vigorously.

The lawsuits name the Limited, Intimate Brands and the members of Intimate Brands'board of directors, and allege that the deal is “inadequate and unfair.” The exchange deal values Intimate Brands at about $18.57 per share, a 6 percent premium on its closing price of $17.50 per share on the day the deal was announced.

The suits seek injunctive relief against completion of the offer, unspecified monetary damages, and recovery of plaintiffs'costs and attorneys'fees, the Limited said in the filing.

The Limited maintains the deal would give the company a “clearer, simpler structure” and allow it to develop its brands across merchandise categories and distribution channels. A special committee made up of Intimate Brands'independent board members is expected to evaluate the offer.