Barnes & Noble, Inc. (NYSE: BKS) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced that it has formed a special committee in order to move forward with a strategic review following multiple parties that have expressed interest in acquiring the company. Of course, the news led to excitement among investors who are sending the stock through the roof in the market this morning. Today, we’ll talk about:
- The potential acquisition;
- what we’re seeing from BKS stock as a result; and
- what we’ll be watching for ahead.
BKS Announces Strategic Review
As mentioned above, Barnes & Noble is having an incredibly strong start to the trading session in the pre-market hours this morning after the company announced that it will be performing an evaluation of strategic alternatives. In a press release, the company said that its Board of Directors has decided to enter into a formal review process in order to evaluate strategic alternatives for the company. The evaluation comes after the company received several expressions of interest from multiple parties that have made an offer to acquire BKS. One of which comes from the company’s Chairman, Leonard Riggio.
In the release, BKS said that it has appointed a Special Committee of independent directors to lead the strategic review process. These directors include Mark Carleton, Paul Guenther, Patricia Higgins and Kimberly Van Der Zon. The special committee will be advised by independent legal advisors. Also, Mr. Riggio, Chairman at BKS and one of the interested parties, has committed to support and vote his shares in favor of any transaction recommended by the Special Committee. However, it’s important to keep in mind that there is no assurance that any transaction will be completed.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Barnes & Noble, the news proved to be overwhelmingly positive. After all, with takeover interest pushing the company into a strategic review, the chances of a transaction are relatively high, and it would likely come with a premium. So, it comes as no surprise to see that excited investors are sending the stock screaming for the top in the market this morning. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:48), BKS is trading at $6.68 per share after a gain of $1.22 per share or 22.34% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on BKS. In particular, we’re interested in following the story surrounding the company’s strategic review to see if it does result in an acquisition. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!