Briefing Book News Article

Dow Jones Newswires -- May 13, 1997
Lawsuit Against Amazon.com May Dampen Interest In IPO By Steven M. Sears NEW YORK (Dow Jones)--The recently filed lawsuit against Amazon.com Inc. (AMZN) may dilute any urgency investors feel about buying into the initial offering, but it isn't expected to delay or seriously damage the deal. The Internet bookstore's IPO is scheduled to get priced Wednesday night, despite the suit filed Monday by its competitor, Barnes & Noble Inc. (BKS). Barnes & Noble, which has an on-line book-selling site on America Online and plans to open an Internet bookstore, charges Amazon.com with falsely claiming to be ''The World's Largest Bookstore'' and falsely claiming to offer more books than Barnes & Noble. Barnes & Noble said in the suit that it wants Amazon.com to stop ads and issue ''corrective'' ads. The New York-based company also wants unspecified damages. A syndicate source characterized the lawsuit as petty and spiteful, and said it would probably put a ''little bit of a damper'' on Amazon.com's IPO. The source said investors will view this suit as somewhat benign because it isn't in response to Amazon's handling of its finances or some other hard-core business practice. The Seattle-based Internet bookstore plans to sell 2.5 million shares through underwriters led by Deutsche Morgan Grenfell Inc. Price talk is $10 to $12. John E. Fitzgibbon Jr., editor of the IPO Aftermarket, said he can't recall another IPO getting hit with a lawsuit right before it was about to get priced. He said the question is how institutional investors perceive the deal. Amazon.com's bankers were undoubtedly finding out when they met with investors Tuesday for a luncheon in the Starlight room on the 18th floor of Manhattan's Waldorf-Astoria hotel. A source at Deustche said the meeting was a regularly scheduled roadshow. ''Of the perceptions we've been getting, the stock is not a hot issue. You're not going to miss anything by stepping aside and coming back later,'' Fitzgibbon said. Amazon.com declined to comment because of the quiet period surrounding its offering. Copyright © 1997 Dow Jones & Company, Inc. All Rights Reserved.

Dow Jones Newswires -- May 13, 1997

Lawsuit Against Amazon.com May Dampen Interest In IPO

By Steven M. Sears

NEW YORK (Dow Jones)--The recently filed lawsuit against Amazon.com Inc. (AMZN) may dilute any urgency investors feel about buying into the initial offering, but it isn't expected to delay or seriously damage the deal.

The Internet bookstore's IPO is scheduled to get priced Wednesday night, despite the suit filed Monday by its competitor, Barnes & Noble Inc. (BKS).

Barnes & Noble, which has an on-line book-selling site on America Online and plans to open an Internet bookstore, charges Amazon.com with falsely claiming to be ''The World's Largest Bookstore'' and falsely claiming to offer more books than Barnes & Noble.

Barnes & Noble said in the suit that it wants Amazon.com to stop ads and issue ''corrective'' ads. The New York-based company also wants unspecified damages.

A syndicate source characterized the lawsuit as petty and spiteful, and said it would probably put a ''little bit of a damper'' on Amazon.com's IPO. The source said investors will view this suit as somewhat benign because it isn't in response to Amazon's handling of its finances or some other hard-core business practice.

The Seattle-based Internet bookstore plans to sell 2.5 million shares through underwriters led by Deutsche Morgan Grenfell Inc. Price talk is $10 to $12.

John E. Fitzgibbon Jr., editor of the IPO Aftermarket, said he can't recall another IPO getting hit with a lawsuit right before it was about to get priced. He said the question is how institutional investors perceive the deal.

Amazon.com's bankers were undoubtedly finding out when they met with investors Tuesday for a luncheon in the Starlight room on the 18th floor of Manhattan's Waldorf-Astoria hotel. A source at Deustche said the meeting was a regularly scheduled roadshow.

''Of the perceptions we've been getting, the stock is not a hot issue. You're not going to miss anything by stepping aside and coming back later,'' Fitzgibbon said.

Amazon.com declined to comment because of the quiet period surrounding its offering.

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Last Updated on 5/27/97