Barnes & Noble Inc., the largest U.S. bookstore chain, adopted a plan to fend off an unwanted takeover, four days after investor Ron Burkle increased his stake in the company.
The plan, which expires in three years, gives shareholders the right to buy shares of a new series of preferred stock if an investor increases its stake to more than 20 percent of Barnes & Noble’s common stock, the company said today. It also would kick in if an investor holding more than 20 percent buys more shares without board approval.
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Burkle’s private-equity firm Yucaipa Cos. said on Nov. 13 that it boosted its stake to almost 18 percent of Barnes & Noble common stock. Burkle is “concerned with the adequacy and enforcement of the company’s corporate governance policies and practices,” according to a filing. He cited the $514 million acquisition of Barnes & Noble College Booksellers Inc., which the company bought in September from Leonard Riggio, Barnes & Noble’s founder and largest shareholder.
Frank Quintero, a Yucaipa spokesman, didn’t immediately respond to a message seeking comment.
Barnes & Noble rose $1.55, or 7.6 percent, to $22.05 today in New York Stock Exchange composite trading. The shares have gained 46 percent in the past year, compared with a 73 percent gain in the Standard & Poor’s Midcap Consumer Discretionary Index.
