Publishing/Writing: Insights, News, Intrigue

03/04/2011

Barnes & Noble Sidesteps Hostile Takeover Bid…Again!


Barnes & Noble has been fighting a hostile takeover bid mounted by Ron Burkle back around the end of 2009. I posted on this intrigue and it’s background twice before (Fight Still on to Control Barnes & Noble and Barnes & Noble’s Fight for Control Moves to Round Two).

Well, the poison pill defense (more details below) put forth by B&N to prevent the takeover was successful in the Delaware lower courts…Mr. Burkle then appealed to the Delaware Supreme Court…and this court has just come down on the side of B&N, also…

Poof! Looks like goodbye to the hostile takeover. I wonder if Ron Burkle has any options left to gain control of our largest ‘brick-and-mortar’ bookseller? 

Besides wanting to post on this seemingly final decision RE this matter, I also wanted to explain a bit of just what a “poison pill” defense is.  

This from Publishers Weekly:

Court Rejects Burkle Appeal 

The Delaware Supreme Court has rejected an appeal by Ron Burkle in a lawsuit challenging a poison pill plan adopted by Barnes & Noble. Burkle filed the original suit this summer after B&N instituted the poison pill provision in response to Burkle significantly increasing his stake in the retailer. A judge last year upheld the provision, prompting Burkle’s appeal.
 
The court did not take long to rule for B&N in the appeal. After hearing arguments Wednesday, on Thursday the court affirmed the judge’s original decision. Friday morning there was no word on whether Burkle will continue to press the issue.
 
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