Barnes & Noble says investor's plan to take it private not 'bona fide'
Sandell
Sandell Asset Management had proposed to take Barnes & Noble private with the help of current shareholders and $500 million in debt financing in a deal that valued the company at more than $650 million  or over $9 per share  the Wall Street Journal reported earlier  citing people familiar with the matter.
The Journal said  the proposal by Sandell  which holds a 2.75 percent stake in Barnes & Noble   also called for roughly $250 million coming from company shareholders keeping their stakes and rolling them into a new private entity  it  would control. (on.wsj.com/2ANekD0)
“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 ” Barnes & Noble said.
 Sandell  did not immediately respond to requests seeking comment.
The Journal said Riggio’s refusal to roll his stake into a private entity as per Sandell’s plan meant the hedge fund would need to find backing from other major shareholders or put up the cash itself.
 Sandell  had in July urged Barnes & Noble to sell  itself   saying  the retailer  could fetch at least $12 per share and attract media or internet companies seeking a retail presence.
Sandell Asset Management had proposed to take Barnes & Noble private with the help of current shareholders and $500 million in debt financing in a deal that valued the company at more than $650 million  or over $9 per share  the Wall Street Journal reported earlier  citing people familiar with the matter.
The Journal said  [TGT]also called for roughly $250 million coming from company shareholders keeping their stakes and rolling them into a new private entity  [TGT]  would control. (on.wsj.com/2ANekD0)
“The company does not take  Sandell ’s proposal as bona fide in that  [TGT]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 ” Barnes & Noble said.
 [TGT]did not immediately respond to requests seeking comment.
The Journal said Riggio’s refusal to roll his stake into a private entity as per Sandell’s plan meant the hedge fund would need to find backing from other major shareholders or put up the cash itself.
 [TGT]had in July urged Barnes & Noble to sell  [TGT]   saying  the retailer  could fetch at least $12 per share and attract media or internet companies seeking a retail presence.