Barnes & Noble Says Activist Investor Take-private Plan Not 'bona Fide'

(RTTNews) - Barnes & Noble, Inc. (BKS) said that a deal proposed by an activist investor Sandell Asset Management to take the company private was not "bona fide" as its chairman and founder, Leonard Riggio, has no intention of rolling his shares into such a transaction, and the Company believes a debt financing is highly unlikely.

Noble issued the response to a Sandell proposal that was published today in the Wall Street Journal. Sandell proposed a transaction to take Barnes & Noble private for approximately $650 million. Sandell's proposal would require debt financing of $500 million and require shareholders, including Chairman Leonard Riggio, who owns an 18% stake, to roll their shares over into a new private entity controlled by Sandell.

Barnes & Noble, said "The Company does not take Sandell's proposal as bona fide in that Sandell is the beneficial owner of 1 million common Barnes & Noble shares worth approximately $7 million, Mr. Riggio has no intention of rolling his shares into such a transaction, and the Company believes a debt financing of $500 million is highly unlikely."

Earlier today, the Wall Street Journal reported that Sandell Asset Management Corp. approached the company with a plan that would value Barnes & Noble at more than $650 million, or more than $9 a share. The price is roughly $750 million including Barnes & Noble debt.

BKS closed Thursday's regular trading at $7.10, up $0.50 or 7.58 percent.