G Asset Management Proposes Acquisition Offer To Barnes & Noble
G Asset Management, a private investment management firm announced on Thursday night that it has approached Barnes & Noble (NYSE: BKS) and presented an offer to acquire 51 percent of the company at $22 per share.
G Asset Management has previously made its views clear that Barnes & Noble is undervalued and that aggregate value of the key segments of the business is not accurately reflected in its share price.
G Asset Management has also proposed to acquire a 51 percent stake of Barnes & Noble's Nook segment, valuing the segment at $5 per share. G Asset Management noted that if the Nook segment is separated from the retail and college business, substantial shareholder value would be created.
G Asset Management has previously attempted to purchase a stake in the company. On November 15, G Asset Management presented an offer to the company's board of directors, which valued the company at $20 per share. At that time, G Asset Management suggested that the company spin off its Nook segment from the college and retail segment and immediately commence a right offering for the Nook segment to existing shareholders.
Shares of Barnes & Noble spiked higher on Friday when the news release was made public. Shares surged nine percent higher at $18.30. The last time share traded above $18 per share was back in August 2013.
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