UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
SBARRO, INC.
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(Name of issuer)
Common Stock, $.01 Par Value
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805844-10-7
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(Cusip Number)
Bruce Berkowitz
100 Jericho Quadrangle, Suite 212
Jericho, New York 11753
212-319-4100
with copies to:
Joseph F. Mazzella
Lane Altman & Owens LLP
101 Federal Street
Boston, Massachusetts 02110
617-345-9800
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(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
March 3, 1999
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(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 of 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
[X ].
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 13d-7(b) for other
parties to whom copies are to be sent.
*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 purpose 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).
<PAGE>
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CUSIP NO. 805844-10-7 SCHEDULE 13D Page 2 of 12 Pages
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1. NAME OF REPORTING PERSON/S.S. OR I.R.S. IDENTIFICATION
NO. OF ABOVE PERSON
GOTHAM CAPITAL V, LLC
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (A) [ ]
(B) [X]
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3. SEC USE ONLY
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4. SOURCE OF FUNDS
WC
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5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
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6. CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
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7. SOLE VOTING POWER
0
NUMBER OF --------------------------------------------------
SHARES 8. SHARED VOTING POWER
BENEFICIALLY
OWNED BY 974,327
EACH --------------------------------------------------
REPORTING 9. SOLE DISPOSITIVE POWER
PERSON
WITH: 0
--------------------------------------------------
10. SHARED DISPOSITIVE POWER
974,327
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
974,327
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12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.75%
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14. TYPE OF REPORTING PERSON
00 - LIMITED LIABILITY COMPANY
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP NO. 805844-10-7 SCHEDULE 13D Page 3 of 12 Pages
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1. NAME OF REPORTING PERSON/S.S. OR I.R.S. IDENTIFICATION
NO. OF ABOVE PERSON
GOTHAM CAPITAL VI, LLC
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (A) [ ]
(B) [X]
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3. SEC USE ONLY
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4. SOURCE OF FUNDS
WC
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5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
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6. CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
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7. SOLE VOTING POWER
0
NUMBER OF --------------------------------------------------
SHARES 8. SHARED VOTING POWER
BENEFICIALLY
OWNED BY 489,000
EACH --------------------------------------------------
REPORTING 9. SOLE DISPOSITIVE POWER
PERSON
WITH: 0
--------------------------------------------------
10. SHARED DISPOSITIVE POWER
489,000
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
489,000
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12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.38%
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14. TYPE OF REPORTING PERSON
00 - LIMITED LIABILITY COMPANY
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP NO. 805844-10-7 SCHEDULE 13D Page 4 of 12 Pages
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1. NAME OF REPORTING PERSON/S.S. OR I.R.S. IDENTIFICATION
NO. OF ABOVE PERSON
GOTHAM CAPITAL VII, LLC
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (A) [ ]
(B) [X]
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3. SEC USE ONLY
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4. SOURCE OF FUNDS
WC
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5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
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6. CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
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7. SOLE VOTING POWER
0
NUMBER OF --------------------------------------------------
SHARES 8. SHARED VOTING POWER
BENEFICIALLY
OWNED BY 412,502
EACH --------------------------------------------------
REPORTING 9. SOLE DISPOSITIVE POWER
PERSON
WITH: 0
--------------------------------------------------
10. SHARED DISPOSITIVE POWER
412,502
- --------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
412,502
- --------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.01%
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14. TYPE OF REPORTING PERSON
00 - LIMITED LIABILITY COMPANY
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP NO. 805844-10-7 SCHEDULE 13D Page 5 of 12 Pages
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1. NAME OF REPORTING PERSON/S.S. OR I.R.S. IDENTIFICATION
NO. OF ABOVE PERSON
JOEL M. GREENBLATT
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (A) [ ]
(B) [X]
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3. SEC USE ONLY
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4. SOURCE OF FUNDS
PF
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5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
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6. CITIZENSHIP OR PLACE OF ORGANIZATION
USA
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7. SOLE VOTING POWER
41,500
NUMBER OF --------------------------------------------------
SHARES 8. SHARED VOTING POWER
BENEFICIALLY
OWNED BY 1,875,829
EACH --------------------------------------------------
REPORTING 9. SOLE DISPOSITIVE POWER
PERSON
WITH: 41,500
--------------------------------------------------
10. SHARED DISPOSITIVE POWER
1,875,829
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,917,329
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12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.34%
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14. TYPE OF REPORTING PERSON
IN Individual
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
CUSIP No. 805844-10-7 SCHEDULE 13D Page 6 of 12 Pages
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ITEM 1. SECURITY AND ISSUER
Securities acquired: Common Stock, par value $.01 ("Common Stock")
Issuer: Sbarro, Inc.
Principal Executive Offices: 763 Larkfield Road
Commack, New York 11725
ITEM 2. IDENTITY AND BACKGROUND
(a) This Schedule is being filed jointly by the following reporting
persons (hereinafter sometimes collectively referred to as the "Reporting
Persons") pursuant to an Agreement of Joint Filing attached hereto as Exhibit A:
(i) Gotham Capital V, LLC, a Delaware limited liability company
("Gotham Capital V");
(ii) Gotham Capital VI, LLC, a Delaware limited liability company
("Gotham Capital VI");
(iii) Gotham Capital VII, LLC, a Delaware limited liability company
which is a wholly-owned subsidiary of Gotham Capital V
("Gotham Capital VII");
(iv) Joel M. Greenblatt, an individual who is the manager and a
controlling person of each of Gotham Capital V, Gotham Capital
VI and Gotham Capital VII.
(b), (c) and (f) Each of the Reporting Persons has a business address
of 100 Jericho Quadrangle, Suite 212, Jericho, New York 11753.
Each of Gotham Capital V, Gotham Capital VI and Gotham Capital VII (the
"Gotham Entities") are privately owned entities which are in the business of
purchasing, for investment and trading purposes, securities and other financial
instruments.
Joel M. Greenblatt is a United States citizen residing in the State of
New York, whose principal occupation is acting as manager of each of the Gotham
Entities.
(d) No events have occurred which would be required to be reported
under the provisions of this Item.
(e) No events have occurred which would be required to be reported
under the provisions of this Item.
<PAGE>
CUSIP No. 805844-10-7 SCHEDULE 13D Page 7 of 12 Pages
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ITEM 3. SOURCE AND AMOUNT OF FUNDS
Gotham Capital V used working capital to directly purchase the Common
Stock owned by it. The approximate aggregate amount of funds used by Gotham
Capital V to purchase such securities was $32,953,295 (excluding broker
commissions and clearing fees).
Gotham Capital VI used working capital to directly purchase the Common
Stock owned by it. The approximate aggregate amount of funds used by Gotham
Capital VI to purchase such securities was $11,770,647 (excluding broker
commissions and clearing fees).
Gotham Capital VII used working capital to directly purchase the Common
Stock owned by it. The approximate aggregate amount of funds used by Gotham
Capital VII to purchase such securities was $2,519,261 (excluding broker
commissions and clearing fees).
Joel M. Greenblatt used personal funds to directly purchase the Common
Stock owned by him. The approximate aggregate amount of funds used by Joel M.
Greenblatt to purchase such securities was $975,250 (excluding broker
commissions and clearing fees).
ITEM 4. PURPOSE OF TRANSACTION
The Gotham Entities and each of the other Reporting Persons has
acquired the securities to obtain a substantial equity position in the Issuer
for investment, and with the further purpose of benefiting from appreciation and
sale of the Issuer's Common Stock, whether resulting from improvement in the
Issuer's operations or prospects, or from sale or merger of the Issuer.
As of the date hereof, and except as otherwise described below, none
of the Reporting Persons has determined to pursue, or propose to the Issuer, any
plans or transactions which would result in any of the following:
(1) acquisition by any person of additional securities of the
Issuer, or the disposition of securities of the Issuer except
for open market or privately negotiated purchases or sales of
the Issuer's securities at times and prices determined by the
investment objectives of each of the Reporting Persons.
(2) any extraordinary corporate transaction, such as a merger,
reorganization or liquidation, involving the Issuer or any of
its subsidiaries;
(3) any sale or transfer of a material amount of assets of the
Issuer or any of its subsidiaries;
(4) any change in the present board of directors or managers of
the Issuer;
(5) any material change in the present capitalization or dividend
policy of the Issuer;
(6) any other material change in the Issuer's business or
corporate structure;
(7) any change in the Issuer's charter, by-laws or instruments
corresponding thereto or other actions which may impede the
acquisition of control of the Issuer by any person;
(8) causing a class of securities of the Issuer to be delisted
from a national securities exchange;
(9) causing a class of securities of the Issuer to become eligible
for termination of registration pursuant to Section 12(g)(4)
of the Securities Exchange Act of 1934; or
(10) any action similar to any of those enumerated above.
<PAGE>
CUSIP No. 805844-10-7 Page 8 of 12 Pages
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On February 26, 1999, the Issuer filed with the Securities and Exchange
Commission a Statement on Schedule 13E-3, regarding a proposal under which all
of the capital stock of the Issuer would be acquired by certain principal
stockholders and the Issuer would thereafter operate as a private company. The
Gotham Entities intend to review and consider the information set forth in such
Schedule 13E-3 in connection with their determination as to whether to vote in
favor of such proposed transaction, subject to such information being finalized
in definitive proxy material. As part of this review and determination, the
Reporting Persons intend to consider the valuations set forth in such Schedule
13E-3, and which may be otherwise available in alternative transactions, and to
do so through discussions with market analysts, other stockholders, investment
professionals, industry sources and other interested parties. Based upon such
discussions, the Reporting Persons may take other steps, change their intentions
as stated above, acquire additional securities of the Issuer, or dispose of
securities of the Issuer in the open market or pursuant to private transactions.
The Reporting Persons intend to continually review its investment in the Issuer
after the date hereof, and from time to time, in light of the Issuer's
operations, prospects, business development, market value and competitive and
strategic position. After such review, the Reporting Persons, may change their
intention with respect to the proposed transaction, or one or more of the
matters described in sub-items (1) through (10) above.
<PAGE>
CUSIP No. 805844-10-7 Page 9 of 12 Pages
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ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
(a)and (b) The beneficial ownership of each of the Reporting Persons of
Common Stock of the Issuer as of the date hereof is as follows:
JOEL M. GREENBLATT*
(a) Amount Beneficially Owned: 1,917,329
--------------------------------------------
(b) Percent of Class: 9.34%
---------------------------------------------------
(c) Number of shares as to which such person has:
(i)sole power to vote or to direct the vote: 41,500
-----------------------
(ii)shared power to vote or to direct the vote: 1,875,829
----------------------
(iii)sole power to dispose or to direct the disposition of: 41,500
----------
(iv) shared power to dispose or to direct the disposition of:1,875,829
----------
GOTHAM CAPITAL V, LLC
(a) Amount Beneficially Owned: 974,327
-------------------------------------------
(b) Percent of Class: 4.75%
----------------------------------------------------
(c) Number of shares as to which such person has:
(i) sole power to vote or to direct the vote: 0
-----------------------
(ii) shared power to vote or to direct the vote: 974,327
---------------------
(iii)sole power to dispose or to direct the disposition of: 0
----------
(iv) shared power to dispose or to direct the disposition of: 974,327
---------
Gotham Capital VI, LLC
(a) Amount Beneficially Owned: 489,000
-------------------------------------------
(b) Percent of Class: 2.38%
----------------------------------------------------
(c) Number of shares as to which such person has:
(i) sole power to vote or to direct the vote: 0
-----------------------
(ii) shared power to vote or to direct the vote: 489,000
---------------------
(iii)sole power to dispose or to direct the disposition of: 0
----------
(iv) shared power to dispose or to direct the disposition of: 489,000
--------
Gotham Capital VII, LLC
(a) Amount Beneficially Owned: 412,502
-------------------------------------------
(b) Percent of Class: 2.01%
----------------------------------------------------
(c) Number of shares as to which such person has:
(i) sole power to vote or to direct the vote: 0
-----------------------
(ii) shared power to vote or to direct the vote: 412,502
---------------------
(iii)sole power to dispose or to direct the disposition of: 0
----------
(iv) shared power to dispose or to direct the disposition of: 412,502
--------
*SHARES REPORTED FOR JOEL M. GREENBLATT INCLUDE SHARES BENEFICIALLY OWNED BY
EACH OF THE GOTHAM ENTITIES, WHICH MAY BE DEEMED TO BE CONTROLLED BY MR.
GREENBLATT WHO IS THE MANAGER THEREOF.
The number of shares beneficially owned and the percentage of outstanding shares
represented thereby, for each of the Reporting Persons, have been computed in
accordance with Rule 13d-3 under the Securities Exchange Act of 1934, as
amended. The percentages of ownership described above are based on the
20,528,309 outstanding shares of Common Stock of the Issuer reported in the
Issuer's Quarterly Report on Form 10-Q for the quarter ended October 4, 1998.
<PAGE>
CUSIP No. 805844-10-7 Page 10 of 12 Pages
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(c) The following are acquisitions (dispositions) of Common Stock of
the Issuer reported on herein which have been effected in the past sixty days by
the Reporting Persons (all such transactions were effected on the open market
except as otherwise indicated).
<TABLE>
<CAPTION>
Reporting Person/
Controlled Entity Date No. of Shares Price Per Share ($) Total ($)
----------------- ---- ------------- ------------------- ---------
<S> <C> <C> <C> <C>
Joel M. Greenblatt 02/17/99 41,500 23.5000 975,250.00
Gotham Capital V 01/15/99 (310,802)(a) N/A N/A
01/22/99 141,600 26.5366 3,757,582.56
01/25/99 4,600 26.6250 122,475.00
01/26/99 8,100 26.6472 215,842.32
02/17/99 100,000 23.5000 2,350,000.00
02/26/99 3,200 25.0000 80,000.00
02/26/99 17,000 24.9988 424,979.60
02/26/99 23,800 24.9271 593,264.98
03/01/99 6,600 25.0000 165,000.00
03/03/99 (92,471)(b) N/A N/A
Gotham Capital VI 01/22/99 76,200 26.5366 2,022,088.92
01/25/99 2,400 26.6250 63,900.00
01/26/99 4,400 26.6472 117,247.68
02/17/99 50,000 23.5000 1,175,000.00
Gotham Capital VII 01/15/99 310,802(c) N/A N/A
01/22/99 25,000 26.5366 663,415.00
01/25/99 2,100 26.6250 55,912.50
01/26/99 3,800 26.6472 101,259.36
02/17/99 47,000 23.5000 1,104,500.00
02/26/99 1,500 25.0000 37,500.00
02/26/99 8,000 24.9988 199,990.40
02/26/99 11,200 24.9271 279,183.52
03/01/99 3,100 25.0000 77,500.00
</TABLE>
(a) Capital contribution to Gotham VII
(b) Distribution to withdrawing member
(c) Capital contribution from Gotham V
<PAGE>
CUSIP No. 805844-10-7 Page 11 of 12 Pages
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ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS AND RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER
Except as set forth hereinabove, there are no contracts, arrangements,
understandings or relationships between the Reporting Persons with respect to
the securities of the Issuer reported upon by this report.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
Exhibit A. Agreement of Joint Filing
After reasonable inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.
This statement may be executed in any number of counterparts, each of which
shall be deemed an original and all of which shall constitute one (1)
instrument.
GOTHAM CAPITAL V, LLC
By: /s/ Joel M. Greenblatt
-------------------------------------
Joel M. Greenblatt, Manager
GOTHAM CAPITAL VI, LLC
By: /s/ Joel M. Greenblatt
-------------------------------------
Joel M. Greenblatt, Manager
GOTHAM CAPITAL VII, LLC
By: /s/ Joel M. Greenblatt
-------------------------------------
Joel M. Greenblatt, Manager
By: /s/ Joel M. Greenblatt
-------------------------------------
Joel M. Greenblatt, individually
Dated as of: March 5, 1999
<PAGE>
CUSIP No. 805844-10-7 Page 12 of 12 Pages
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EXHIBIT A
AGREEMENT OF JOINT FILING
SBARRO, INC.
COMMON STOCK, PAR VALUE $.01
In accordance with Rule 13d-1(k) under the Securities Exchange Act of
1934, as amended, the undersigned hereby confirm the agreement by and among them
to the joint filing on behalf of each of them of a Statement on Schedule 13D,
and any and all amendments thereto, with respect to the above referenced
securities and that this Agreement be included as an Exhibit to such filing.
This Agreement may be executed in any number of counterparts, each of
which shall be deemed to be an original and all of which together shall be
deemed to constitute one and the same Agreement.
IN WITNESS WHEREOF, the undersigned hereby execute this Agreement as of
this 5th day of March, 1999.
GOTHAM CAPITAL V, LLC
By: /s/ Joel M. Greenblatt
-------------------------------------
Joel M. Greenblatt, Manager
GOTHAM CAPITAL VI, LLC
By: /s/ Joel M. Greenblatt
-------------------------------------
Joel M. Greenblatt, Manager
GOTHAM CAPITAL VII, LLC
By: /s/ Joel M. Greenblatt
-------------------------------------
Joel M. Greenblatt, Manager
By: /s/ Joel M. Greenblatt
-------------------------------------
Joel M. Greenblatt, individually
