November 5, 2010 / 1:45 PM / 9 years ago

UPDATE 1-ISS urges Barnes shareholders to renew poison pill

* ISS cites change in original poison pill

* Special shareholder meeting scheduled for Nov. 17

NEW YORK, Nov 5 (Reuters) - Influential shareholder advisory firm ISS is recommending Barnes & Noble Inc (BKS.N) shareholders renew an anti-takeover poison pill at a special meeting on Nov. 17.

The poison pill was adopted last year after dissident shareholder Ron Burkle doubled his stake within a matter of days.

In a report obtained by Reuters, Institutional Shareholder Services said it was recommending renewal of the measure after the Barnes & Noble board “amended the original pill to close certain loopholes which would have allowed certain insiders to pursue creeping control.”

In a bid to convince shareholders to extend the poison pill, the bookstore chain recently limited the ability of its chairman, Leonard Riggio, and his family to increase their stake in the company.

“The pill has a reasonable threshold and term, does not limit the ability of a future board to redeem the pill,” ISS said. (Reporting by Dhanya Skariachan and Phil Wahba; editing by John Wallace)

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