Barnes & Noble (BKS) Going Private? Maybe Not.
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Barnes & Noble (NYSE: BKS) may be following in the footsteps of Borders Group (OTCBB: BGPIQ) in the coming months.
Reuters is saying today that the New York, NY-based bookseller is facing a limited about of potential buyers, as many question how long they can compete against formidable rivals.
Shares, currently at $11.80, are well below levels that they were trading at when the company announced that they were exploring a possible sale last August. Though shares eventually got above $18, and then $19 on Borders weakness, the stock has succumbed to the realization that a buyer may not be in the works.
One of the reasons? Founder Leonard Riggio, a 29.7% shareholder, said that he would consider taking the company private. Riggio may be a deterrent to potential buyers moving forward, according to one analyst from Standard & Poor's. The analyst said that Riggio is unlikely to cede power, and a private takeover is unlikely unless its led by him.
BKS shares are flat ahead of the market today.
Reuters is saying today that the New York, NY-based bookseller is facing a limited about of potential buyers, as many question how long they can compete against formidable rivals.
Shares, currently at $11.80, are well below levels that they were trading at when the company announced that they were exploring a possible sale last August. Though shares eventually got above $18, and then $19 on Borders weakness, the stock has succumbed to the realization that a buyer may not be in the works.
One of the reasons? Founder Leonard Riggio, a 29.7% shareholder, said that he would consider taking the company private. Riggio may be a deterrent to potential buyers moving forward, according to one analyst from Standard & Poor's. The analyst said that Riggio is unlikely to cede power, and a private takeover is unlikely unless its led by him.
BKS shares are flat ahead of the market today.
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