Barnes & Noble, Inc. (NYSE: BKS) rose Thursday after the company announced Wednesday afternoon it has appointed a Special Committee to review strategic alternatives.
The company said it had received interest from "multiple parties," including company chairman Leonard Riggio, who has pledged to vote his shares in favor of any transaction the special committee recommends.
The Board of Directors has appointed a Special Committee to lead the strategic review process. The committee will be advised by independent legal and financial advisors. Riggio has committed to support and vote his shares in favor of any transaction recommended by the Special Committee. There can be no assurance that a transaction will be consummated.
The company has observed rapid material accumulations of its stock by a party or parties that cannot be identified. In light of the impending strategic alternatives process and such share accumulations, the Board also announced the adoption of a short-term Shareholder Rights Plan.
The adoption of the Rights Plan is intended to maximize the likelihood of a successful outcome for the strategic alternatives process.
Under the terms of the Rights Plan, the rights will expire on October 2, 2019. In the absence of further action by the Board and subject to certain exceptions, the rights will be exercisable if a person or group, without Board approval, acquires 20% or more of Barnes & Noble’s Common Stock or announces a tender offer which results in the ownership of 20% or more of Barnes & Noble’s Common Stock.
Shares in the book store giant popped $1.32, or 24.2%, to $6.78
