MAIN NEWS HEADLINES
January 8 – January 15, 2008 Edition
Investment Firm
Buys 8.3% Stake
In Barnes & Noble
NEW YORK, NY (Authorlink News, Jan. 6, 2009)–Yucaipa American Management, LLC, the investment arm of supermarket giant Ron Burkle, said Friday that it has bought an 8.3% stake in Barnes & Noble, Inc.
Burkle said he believes the shares were undervalued by the market when Yucaipa acquired them in November. The sale of shares is reportedly for investment only. However, the investment firm will be closely monitoring B&N’s performance. The investors also will work with management to strategically reposition the business and improve operations. Burkle’s aim is to create value for investors and most likely to sell shares to other investors.
While B&N’s shares have been undervalued, the company has a strong balance sheet and the management team is regarded as stable. The company could conceivably expand its market share against its competitor, Borders, which is struggling for survival.
