Join        Login             Stock Quote

Barnes & Noble (BKS) Jumps After Chairman Bids For Retail Assets

 February 25, 2013 07:50 AM

(By Balaseshan) Barnes & Noble Inc. (NYSE: BKS) shares jumped 17.69% in premarket after the bookseller said it received proposal from Chairman Leonard Riggio to buy all assets of the retail business.

In a regulatory filing, Riggio said the retail business would include, among other things, Barnes & Noble Booksellers Inc. and barnesandnoble.com, but exclude NOOK Media LLC (comprising the digital and College businesses).

Riggio intends to make the proposal in order to facilitate the company's evaluation of its review of strategic options for the separation of its investment in NOOK Media LLC.

[Related -Barnes & Noble, Inc. (BKS) Q2 Earnings Preview: Same Old Story?]

The purchase price is currently contemplated to be comprised primarily of cash consideration and the assumption of certain liabilities of the company. Riggio would provide the equity financing for the transaction and undertake to arrange any debt financing required for the transaction, he said in the filing.

In response, the company said the process of evaluating a proposal and negotiation of any transaction will be overseen by a Strategic Committee of three independent directors: David Golden, David Wilson and Patricia Higgins, who is Chair of the Strategic Committee.

The Strategic Committee has selected Evercore Partners to serve as its financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP to serve as its legal advisor.

[Related -Futures Down As Investors In Cautious Mood; Saks, Inc. (SKS) In Focus]

The company operates 689 Barnes & Noble bookstores in 50 states, and an e-commerce site, BN.com. The NOOK digital business offers an expansive collection of digital reading and entertainment content through the NOOK Store, while Barnes & Noble College Booksellers, LLC operates 674 bookstores.

BKS closed Friday's regular session up 2.43% at $13.51. The stock has been trading between $10.45 and $26.00 for the past 52 weeks.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageInitial Jobless Claims Rose Unexpectedly

Claims unexpectedly rose in the latest report through last weekend to breach 300,000 for the first time read on...

article imageAll Quiet on the Record High Front

What can we glean from the media’s lack of attention to the market’s recent record read on...

article imageThe Chip Maker Short Sellers Should Be Watching

Investing in semiconductor stocks is always tricky. Industry cycles can lead to bumps in the road for the read on...

article imageChicago Fed: US Economic Growth Slowed In October

The pace of US growth slowed more than expected in October, according to this morning’s update of the read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.