Barnes & Noble Spikes on Yucaipa Bid
NEW YORK (
) --
Barnes & Noble
(BKS) - Get Report
is surging in after-market trading Monday, following news that
Yucaipa Funds
has attempted to gain a 37% stake in the company.
Currently Yucaipa, run by investor Ron Burkle, owns 18.7% of Barnes & Noble. According to a Securities and Exchange filing, Burkle sent a letter to the company's board to get its approval to garner a 37% stake in the company. This would match the current stake hold by the controlling Riggio family.
Burkle is also asking the board to agree that increasing his stake to that size will not trigger the company's poison pill, and wants to ensure the Riggio family cannot acquire any more stock without triggering the pill.
Shares are gaining 17.3% to $21.11 in the after-market, after ending the regular trading session up 3% to $18.
-- Reported by Jeanine Poggi in New York.
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