Barnes & Noble Spikes After Barron's Warns Against Low Bid

Shares of Barnes & Noble

rallied Monday after Barron's mentioned the company over the weekend. In an article entitled, “

,” Barron's argues that the board shouldn't let its founder and chairman, Leonard Riggio, “steal” the retail business. Specifically, Barron's says that the booksellers retail outlets alone could be worth $19 per share, and that Riggio shouldn't be allowed to make a “low-ball” offer like Michael Dell made for his company. Last month, Riggio said that he would be interested in buying part of the company: its retail stores. This follows a trend that's grown in recent weeks where founders have tried to purchase back their struggling companies. Besides the aforementioned Dell, Best Buy's

founder Richard Schulze has been to trying to increase his control of the company. Barron's also mentions an outright sale of Barnes & Noble as a potential positive catalyst for the stock. Specifically, the paper suggests that Microsoft

could be interested in acquiring Barnes & Noble to jump-start its retail business and expand its investment in the Nook (Microsoft purchased a nearly 17% stake in Barnes & Noble's Nook business last year). There's also Liberty Media, which owns about 17% of Barnes & Noble. Liberty Media has the right to block Riggio's attempts to acquire the retail stores. One positive catalyst that Barron's doesn't mention is Barnes & Noble's high short interest. Well over one-third of the company's shares have been sold short. If a partial or total takeover looks likely, these shares would be forced to cover, sending shares strongly higher. At any rate, Barnes & Noble's shareholders are getting rewarded on Monday, as shares hover around $16.60.