Barnes & Noble Shares Surge 24% As It Explores Possible Sale

(RTTNews) - Shares of Barnes & Noble Inc. (BKS) are up nearly 24 percent on the extended trading session on Wednesday after the book store chain said it has decided to enter into a formal review process to evaluate strategic alternatives.

The company said it made the decision after receiving several expressions of interest from multiple parties in making an offer to acquire, including from the company's Chairman, Leonard Riggio.

The Board of Directors has appointed a Special Committee of independent directors, comprised of Mark Carleton, Paul Guenther, Patricia Higgins and Kimberley Van Der Zon, to lead the strategic review process.

The move comes nearly a month after investor Richard Schottenfeld disclosed a big stake in the bookseller.

The company, in a statement said, it has has also adopted a short-term shareholder rights plan in order to maximize the likelihood of a successful outcome for the strategic alternatives process. Under the terms of the rights plan, the rights will expire on October 2, 2019.

The rights will be exercisable if a person or group, without Board approval, acquires 20% or more of Barnes & Noble's stock or announces a tender offer which results in the ownership of 20% or more.

The Board of Directors is being advised by Guggenheim Securities, LLC as its financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP as its legal advisor.

Separately, Barnes & Noble declared a quarterly cash dividend of $0.15 per share, payable on October 26 to stockholders of record October 15.

BKS closed Wednesday's trading at $5.46, down $0.09 or 1.62%, on the NYSE. The stock, however, gained $1.30 or 23.81% in the after-hours trade.