Barnes & Noble Heads Higher As It Gets Closer to Selling Itself

Shares of bookseller Barnes & Noble, who has the largest number of retail outlets in the United States, went higher on Thursday on rumors that the company is close to a sale with Elliott Management Corp.

The stock saw gains as high as 36% on the rumors, making it the biggest gain the company’s shares have seen since 2012.

According to a Bloomberg news article citing people familiar with the process, Barnes & Noble is nearing a deal to
sell itself to the hedge fund.

The sources have said that two parties have emerged as the most likely buyers for the book retailer: Elliott and Readerlink LLC, a private book distributor based in Oak Brook, Illinois.

One of the sources however has said that Elliott’s offer is looking more attractive. The sources also said that Chairman Leonard Riggio, the company’s largest shareholder, would be part of the Readerlink deal.

According to the Financial Times, Elliott would offer $6.50 a share in a deal that values the chain at $476 million.
It was this past October that Barnes & Noble had said that it was considering a sale to several interested parties, including Riggio, which later withdrew.

The sources have clarified that the discussions are ongoing and the company could still choose not to pursue a sale.

Disclaimer: We have no position in Barnes & Noble, Inc. (NYSE: BKS) and have not been compensated for this article.