June 14, 2019 / 3:57 PM / 6 days ago

Barnes & Noble says it did not get any other bids before Elliott's deadline

FILE PHOTO: A customer leaves the Barnes & Noble store in Westminster, Colorado June 22, 2016. REUTERS/Rick Wilking

(Reuters) - Barnes & Noble Inc said on Friday it had not received any other offers from prospective bidders before Elliott Management’s “keep-shop” deadline.

Elliott, which offered $475.8 million to take the bookstore retailer private, had a provision that allows the hedge fund to be entitled to a payment of up to $4 million if the retailer struck a deal with a third party before the deadline. Thereafter, the breakup fee will be $17.5 million.

“I can confirm that we received no other bids before last night’s (Thursday) 11:59 PM (ET) deadline,” a spokeswoman for Barnes & Noble said.

Barnes & Noble investor Richard Schottenfeld said on Thursday the bookstore chain is worth more than Elliott’s recent offer and he may engage in discussions with the company’s board for its sale.

The U.S. bookstore chain has been exploring options for a buyout since last October, with multiple parties showing interest, including founder-chairman Leonard Riggio.

Barnes & Noble has been struggling to grow sales at its bookstores, as consumers shift to other hobbies or prefer to order books from online stores like Amazon.com Inc.

Shares of the bookstore chain were down 2.6% at $6.7 in morning trading.

Reporting by Nivedita Balu in Bengaluru; Editing by James Emmanuel

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