Barnes & Noble has accepted an $683 million acquisition offer (including debt) from private equity firm Elliot Management.
Now that offer could be in question following a report Readerlink LLC, an Oak Brook, Ill.-based book distributor, is considering placing a superior counter offer for Barnes & Noble.
The Wall Street Journal, citing sources familiar with the situation, said a potential bid would exceed Elliott’s $6.50-per-share offer. Indeed, B&N shares closed June 10 at $6.80 per share on the news.
Readerlink has until June 13 to submit a formal bid.
Should Barnes & Noble, which also sells digital movies through its Nook subsidiary, in addition to DVD/Blu-ray Disc titles in stores, strike another deal, it would be on the hook to Elliott for $4 million break-up fee – an amount that balloons to $17.5 million after June 13.