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Sandell, which said it had accumulated a "meaningful" stake in
Barnes & Noble, said the company could fetch a price of $12 per
share or possibly higher in a "go-private" deal.
Shares of Barnes & Noble, which had a market value of $514.8
million as of Monday, were up 17.6 percent at $8.35 in premarket
trading.
Barnes & Noble declined to comment.
Sales at Barnes & Noble's stores have been sliding for years,
hurt by competition from Amazon.com Inc <AMZN.O>, as more
shoppers go online to buy cheaper products as well as for
convenience.
Barnes & Noble's "robust cash flow" and low debt would make the
company highly attractive to buyers such as private equity
firms, Sandell said, adding that internet and media companies
looking for a retail presence may also show interest.
Sandell suggested that Barnes & Noble's founder and Chairman
Leonard Riggio take the company private in a leveraged deal,
similar to his attempt in 2013.
Sandell also asked the company to retain an investment banking
firm to review strategic options.
(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Sai
Sachin Ravikumar)
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