Bookseller Barnes & Noble Inc. will consider a sale, including a possible offer from its executive chairman, Leonard Riggio.
The company said Wednesday that it will initiate a formal review to explore options put forth by multiple parties — a special committee of the board will spearhead the effort. Riggio will vote his shares in favor of the transaction recommended by the committee. He currently maintains a 19.2 percent stake in the company.
In addition to exploring a sale, the New York-based chain said it adopted a short-term shareholder rights plan after a “rapid material accumulations” of its stock by parties it is unable to identify. The rights would take hold if an individual or group buys 20 percent or more of Barnes & Noble (NYSE: BKS) common shares and fails to seek the board’s approval.
Per the company, the rights holders will be able to purchase preferred shares equivalent to the retailer’s common stock at a 50 percent discount in order to dilute an outsider’s holdings.
The troubled company may be looking to rebound as competition from Amazon, in addition to other e-commerce companies, has devastated Barnes & Noble's reign over the bookselling business. The company’s stock fell 30 percent under former CEO Demos Parneros’s watch, which began in April of 2017. Parneros was fired in July 2018.
Read more at the Denver Business Journal: https://bit.ly/2PnrKNy
