Shares of Barnes & Noble jumped almost 15 percent on Monday after a hedge fund disclosed a stake in the company.
THE SPARK: Jana Partners said in a filing on Friday with the Securities and Exchange Commission that it owns nearly 7 million shares of the company, or about 12.5 percent of its 55.9 million outstanding shares.
THE BIG PICTURE: Some Wall Street analysts have speculated that New York-based Barnes & Noble might be a takeover target or might spin off its Nook e-book and e-reader business. The company has focused on investing in the Nook business and its digital library as it faces increasing competition from discount stores and online retailers. It has struggled to turn an annual profit.
SHARE ACTION: Barnes & Noble shares rose $1.69, or 14.9 percent, to $13.03 by mid-afternoon. By Friday, they had fallen about 22 percent from their 52-week high of $18.10, reached in late November. Their trading low for the past year was $9.35.