Shares of Barnes & Noble (BKS) - Get Report  were up more than 0.7% to $6.85 Tuesday on a report that the book retailer was set to receive a superior bid from book distributor Readerlink just days after hedge fund Elliott Management agreed to pay up to $683 million, including debt, for the company. 

The Wall Street Journal reported that Readerlink was looking to top the $6.50 per share that Elliott Management agreed to pay for the company. Barnes & Noble shares were trading above $7 per share on Tuesday.

Elliott Management has a contingency clause in its merger agreement, according to a securities filing, that stipulates that Elliott would be entitled to a payment of up to $4 million should Barnes & Noble come to terms with a third party before 11:59 p.m. on June 13. 

After that date, the breakup fee would be $17.5 million in cash. 

Barnes & Noble has seen a downturn amid the rise of and digital retailers. The company currently has 627 stores around the country.

Last year, the company reported a net loss of $125 million after reporting a profit of $22 million in 2017. Revenue declined 6% to $3.7 billion while comparable-store sales were down 5.4%.