Equity Firm Submits Barnes & Noble Buyout Offer

posted on by Lynzee Loveridge

Private equity firm G Asset Management submitted a buyout offer to the book retailer chain Barnes & Noble for 51 percent of its outstanding market shares on Friday. G Asset offered US$22 a share, an increase compared to the company's current value of US$17.69 a share as of Friday. The offer is worth about US$661.5 million.

G Asset previously offered Barnes & Noble US$20 a share in November. If Barnes & Noble does not accept the offer, G Asset would look to purchasing a majority stake in the company's Nook segment for US$5 a share. Microsoft was previously considering a buyout of the Nook segement.

Analyst David Strasser of Janney Capital stated that getting the offer accepted would be a challenge due to stakes held by insiders within the company including Chairman Len Riggio.

Barnes & Noble CEO William Lynch resigned in July amid declining sales. The bookstore company had an annual net loss of US$154.8 million in the 2012 fiscal year.

Source: Market Watch via ICv2

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