Barnes & Noble Turns Down $650 Million Offer

Barnes & Noble, Inc., the nation’s largest bookstore chain, has issued a response to a Sandell Asset Management proposal to take the company private.

NY-based 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.

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.

The Company operates 632 Barnes & Noble bookstores in 50 states. It has headquarters in NY.

Shares in the company (BKS) were up $0.50 to close at $7.10 on Thursday. The bookstore chain has a stock market capitalization of $515.6 million.