The Limited Inc. (Columbus, Ohio) sweetened its offer for outstanding shares of Intimate Brands Inc. in its attempt once again to own the entire subsidiary that's comprised of Victoria's Secret, Bath & Body Works and White Barn Candle Co.
The current offer is 1.10 shares of Limited stock for every share of Intimate Brands stock. The original offer, when The Limited announced in early February its intentions to buy back the 16 percent of Intimate Brands it didn't already own, was 1.046 shares of Limited stock. The new increased offer expires March 20, 2002.
Three days after the retailer initially announced its intentions, Intimate Brands shareholders filed suit against The Limited Inc., arguing that the offer was “inadequate and unfair.”
The apparel retailing chain, which spun off 16 percent of Intimate Brands in 1995, has said that it has already bought back 5 million of the outstanding shares via the initial offering. About 84 million shares remain outstanding.
“We believe this recombination of the enterprise is in the best interests of both Limited, Inc. and Intimate Brands, Inc., shareholders and associates,” Limited chairman and ceo Leslie Wexner said at the time of the original offering. “This clearer, simpler structure will allow us to fully develop the potential of our best brands across merchandise categories and distribution channels. A recombination of the businesses will provide greater flexibility in allocating resources, functional expertise and talent.”