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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.

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