Tags: ron burkle | barnes andnoble

Burkle: No Plan to Acquire Control of Barnes & Noble

Monday, 30 Aug 2010 10:58 AM

Activist investor Ron Burkle's Yucaipa Companies shot back at Barnes & Noble Inc, saying on Monday that it has no intention of taking control of the bookseller and questioned the willingness of the bookseller's board to take on its largest shareholder.

Burkle, who owns 18.8 percent of the largest U.S. bookstore chain, launched a proxy war earlier this month to put three directors, including himself, on the board, shortly after the largest U.S. bookstore chain put itself up for sale.

Barnes & Noble, which was built into a national chain by its chairman and largest shareholder Leonard Riggio, said in its own letter last week that Burkle was unqualified to sit on its board and accused the billionaire of trying to take over the bookseller without rewarding shareholders.

Yucaipa denied the charge in a letter to Barnes & Noble shareholders, saying "They want to distract you from the real issues: their record of poor performance and their history of approving special treatment and related party transactions that benefit the Riggio family."

Burkle has criticized Barnes & Noble's corporate governance. In the letter, Yucaipa again criticized last year's acquisition of Barnes & Noble College Booksellers, a chain of 637 on-campus stores, from Riggio and his wife for $514 million.

Riggio, who owns 28.2 percent of shares, is up for re-election at next month's annual shareholder meeting.

Yucaipa said the current board was "not willing to stand up to Leonard Riggio on your behalf and say 'enough is enough.'"

A spokeswoman for Barnes & Noble did not immediately respond to a request for comment.


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Activist investor Ron Burkle's Yucaipa Companies shot back at Barnes Noble Inc, saying on Monday that it has no intention of taking control of the bookseller and questioned the willingness of the bookseller's board to take on its largest shareholder. Burkle, who owns...
ron burkle,barnes andnoble
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2010-58-30
Monday, 30 Aug 2010 10:58 AM
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