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)