November 16, 2017 / 6:40 PM / in a month

Activist investor draws up plan to take Barnes & Noble private-WSJ

Nov 16 (Reuters) - Sandell Asset Management Corp, an activist investor in Barnes & Noble Inc, has proposed a transaction that would take the bookseller private with the help of current shareholders and debt financing, the Wall Street Journal reported on Thursday.

Sandell's plan values Barnes & Noble at more than $650 million, or more than $9 a share, the WSJ reported, citing people familiar with the matter. (on.wsj.com/2ANekD0)

Shares of Barnes & Noble, which has a market capitalization of about $480 million, were up 12.5 percent at $7.40 in afternoon trading.

The WSJ said the proposal faces a number of obstacles, including raising $500 million in debt financing and Barnes & Noble Chairman Leonard Riggio’s refusal to roll his roughly 18 percent stake in to a private company as per Sandell’s proposal.

The company is still evaluating the proposal, the newspaper reported.

Barnes & Noble and Sandell did not immediately respond to a request for a comment. (Reporting by Vibhuti Sharma in Bengaluru; Editing by Savio D‘Souza)

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