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Barnes & Noble (B & N) is in the process of signing a $ 436 million contract to be purchased by Elliott Management Hedge Fund the Wall Street newspaper (WSJ), while Waterstones boss James Daunt could lead the two retailers.
If the transaction succeeds, Barnes & Noble will be the second chain of bookstores purchased by Elliott since 2018 after the hedge fund was bought by the New York hedge fund Waterstones last May. Speculation goes up that Waterstones m.d. Daunt could lead both retailers. Waterstones declined to comment.
The private equity firm is the main bidder for the US channel and is expected to pay $ 6.50 per share, the WSJ reports. At the close on Thursday, B & N had a market value of $ 436 million after the shares had increased 30% to $ 5.96. If successful, this agreement will mark the end of the once dominant US book distributor as a publicly traded company.
The agreement – which could collapse – began in October, according to the report WSJ, several parties having expressed an interest in the acquisition.
B & N, which has 627 stores in the United States, closed the fiscal year of April 28, 2018 with a loss of $ 125.5 million, the business figure having decreased by 6% for s & # 39; To $ 3.7 billion. The chain had a long-term debt of $ 129.3 million in January, according to the report. WSJ.
The American channel has struggled to compete with Amazon in recent years and has also faced the rebirth of independent bookstores. In response, B & N developed its website and launched the Nook ereader. He closed several stores, including his flagship product. If successful, this agreement will mark the end of the once dominant US book distributor as a publicly traded company.
Waterstones, which has approximately 293 stores in the UK and Ireland, returned to earnings, recording operating profit of £ 24.0m (excluding Ireland and Europe) and a turnover of $ 385.7m. £, at the end of the year 2018.
In January 2019, Elliott, who employs 464 people, claims to manage an asset of about $ 34 billion.
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