Barnes & Noble Launches Formal Review to Evaluate Possible Sale
A special committee of the Barnes & Noble board will lead a strategic review; board has adopted short-term shareholder rights plan
Barnes & Noble Launches Formal Review to Evaluate Strategic Alternatives, Including Possible Sale
Barnes & Noble Has Received Expressions of Interest From Multiple Parties, Including Chairman Leonard Riggio
Special Committee of Barnes & Noble Board Will Lead Strategic Review
Barnes & Noble Board Adopted Short-term Shareholder Rights Plan
Barnes & Noble Inc. said it is considering a sale of the company after receiving expressions of interest from multiple parties, including from the company’s executive chairman, Leonard Riggio.
The struggling bookseller on Wednesday said it would launch a formal review process to evaluate its strategic options. A special committee of the board will lead the review.
Barnes & Noble also said it has adopted a short-term shareholder rights plan, after observing “rapid material accumulations” of its stock by parties it can’t identify. The rights, which will expire in a year, would go into effect if a person or group acquires 20% or more of Barnes & Noble common shares without the board’s approval.
The plan would allow all rights holders to purchase preferred shares that are equivalent to the retailer’s common stock at a 50% discount. This would dilute the outsider’s holdings.
The company said Mr. Riggio, who has a 19.2% stake, will vote his shares in favor of any transaction recommended by the committee.
In after-hours trading, Barnes & Noble shares were trading at $6.75, up nearly 24%.