Investor urges Barnes & Noble to seek a sale, shares jump

AP News
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Posted: Jul 25, 2017 11:01 AM

NEW YORK (AP) — An activist investor has bought a "meaningful" stake in Barnes & Noble Inc. and is urging the bookseller to sell itself.

Sandell Asset Management Corp. CEO Thomas E. Sandell, in a letter to Barnes & Noble's board, said "the public market for retail stocks is contributing to a risky and inhospitable environment" and the company would be better served if it were private or part of a larger company.

He did not disclose the amount of Sandell's stake.

Shares of Barnes & Noble jumped 70 cents, or 9.9 percent, to $7.83 in early Tuesday trading.

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In the letter to board, Sandell said the company is the only "truly national bookstore chain" and compared its locations to "beachfront property." He said the company could get more than $12 per share.