As soon as the bookstore giant revealed that they are considering the sale of the company, the stock showed a jump of 20%.
On Wednesday, the board said it had formulated a special committee to review the offers. One offer came from Len Riggio, Chairman of Barnes & Noble. He is the largest shareholder of the company, with around 20% of shares.
Barnes & Noble, which is as well abbreviated as BKS as well told that a shareholder it failed to identify had quickly, built up great holdings of the company. To avoid the situation of a hostile takeover, the board of directors of Barnes & Noble approved the phenomena that are called a poison pill.
The poison pill will soon get into the event when an unidentified person or business gathers around 20% or more stocks of the company. At that point, the shareholders will have the benefits of purchasing the stocks of Barnes & Noble at a discount of 50%, which reduces the shares’ value.
The announcement made immediately following to the disclosure made by another investor of having stakes of around 7% and stated he had the discussion with Riggio about taking over the company.
As said by the board, Riggio would cast the vote of his shares in favor of any committee recommended transaction. The anticipated sale is nothing but the latest twist in the journey of Barnes & Noble, which is seeking for its 6th chief executive.
The bookstore has laid off Demos Parneros, former CEO, in July, based on the unspecified violation of the policy. Later the company shared that the claims of bullying and sexual harassment is what lead to its firing.
Soon after this in August, the former CEO sued Barnes & Noble for defamation and for terminating him without giving any reasons.
The company still has a lot in his hands, and a lot has to become in open yet.
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