Readerlink Works For Higher Offer For Barnes & Noble Than Elliott: WSJ

(RTTNews) - Book distributor Readerlink LLC is working towards making a higher bid for Barnes & Noble Inc. than that of hedge fund Elliott Management Corp., the Wall Street Journal reported citing a person familiar with the situation.

Barnes & Nobles, a book retailer, last week had entered into an agreement to be bought by Elliott for $6.50 a share, or $475 million in cash. The deal would be worth $683 million including the assumption of debt.

As per the "keep-shop" provision in the agreement, if Barnes & Nobles enters into a deal with a third party before 11:59 p.m ET on June 13, Elliott would be entitled to a payment of up to $4 million. After this, the breakup fee would be $17.5 million.

The report noted that if Readerlink can get financing, it would consider making a bid before the given cutoff date.