(Reuters) - Barnes & Noble Inc investor Richard Schottenfeld said on Thursday the bookstore chain is worth more than Elliott Management’s recent offer and he may engage in discussions with the company’s board regarding its sale.
Barnes & Noble, one of the leading bookstores in the United States until online retailers such as Amazon.com Inc took over, was offered a take-private deal for $475.8 million by Elliott Management earlier this month.
Shortly after, book distribution company Readerlink LLC was also said to be working towards making a bid for the company that would top Elliott’s agreed price of $6.50 per share, according to media reports.
Schottenfeld, who had a 3.4% stake bit.ly/31vGRLn in the company as of June 7, is among the top ten investors in the retailer.
He also urged the company’s special committee to reevaluate all offers and consider the superior bid.
Elliott has a “keep-shop” provision that says if the company strikes a deal with a third party before midnight Thursday, the hedge fund would be entitled to a payment of up to $4 million.
Barnes & Noble declined to comment.
Shares of the company were up nearly 1 percent in late morning trade.
Reporting by Nivedita Balu in Bengaluru; Editing by Maju Samuel
Our Standards: The Thomson Reuters Trust Principles.