Other News - Oct. 11, 1993

Barnes & Noble Sue Over Stock Conversion: The bookstore chain, which recently went public, was sued by Vendex International, a Dutch retail and services group that holds a 50% stake in the Delaware-based company. Vendex’s suit concerned the price upon which its preferred shares of the bookstore chain would be converted into common. On Oct. 4, Barnes & Noble completed an initial public offering of 8.2 million shares of common stock. On Oct. 5, Vendex tendered its 20,000 shares of preferred stock. Based on the prospectus mid-range value of $17 a share for common stock, Vendex claimed it should receive 1.3 million common shares. According to the complaint filed Friday in Delaware Chancery Court, Barnes & Noble determined the fair-market value of its common stock to be the final public offering price of $20 per share, thus entitling Vendex to only 1.1 million shares.