NEW YORK (
-- Investor Ronald Burkle isn't giving up his battle to up his stake in
Barnes & Noble
Burkle is accusing Barnes & Noble of putting the interests of the controlling Riggio family ahead of the best interest for shareholders. Previously, Barnes & Noble's board of directors blocked Burkle's attempt to double his stake in the company to 37% without triggering the poison pill.
According to a Securities and Exchange filing, Burkle sent a letter to the board on Feb. 25 asking to meet with board members who are not company executives to discuss its poison pill put in place in November to prevent a hostile takeover. The poison pill goes into effect when a single investor exceeds a 20% ownership of the book retailer.
Earlier this week, Barnes & Noble said it foresees weak sales and profits for the year. This outlook came after the retailer reported a hefty third-quarter sales gain, receiving a boost from its Nook e-reader.
During the quarter, Barnes & Noble earned $80.4 million, or $1.38 a share, a 6% decrease from $85.2 million, or $1.42 a share, for the book retailer from the year-ago period. Analysts had expected earnings of $1.34 a share.
Revenue spiked 33% to $2.17 billion, boosted by the addition of the Barnes & Noble College Booksellers unit, which the company bought back from its chairman in August.
Looking ahead, Barnes & Noble expects a fourth-quarter loss between 85 cents and $1.15 a share, greater than the 61 cents analysts forecast. For the year, the company foresees earnings in the range of 23 cents to 53 cents, while Wall Street is looking for 58 cents a share. Barnes & Noble expects a sales drop between 3% and 5% for the current fiscal year.
-- Reported by Jeanine Poggi in New York.
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