G Asset Management has submitted an offer to acquire 51% of Barnes & Noble’s outstanding shares, according to MarketWatch. The price the little known investment firm is offering is $22 a share, substantially higher than $17.69, where the stock closed on Friday. Given that the offer was revealed on Friday morning, a share price so far below the offer price (even though it went up 5% on Friday) indicates that investors do not believe that the proposed transaction is likely to close.
G Asset is unlikely to have the necessary cash, and would have to borrow to finance the purchase, according to the report.
G Asset suggested that if it is unable to acquire 51% of the company’s shares, that it would be interested in acquiring the company’s Nook business at $5 a share.
The investment company said that the $22 offer was an increase from a $20 offer made late last year. That offer was never disclosed by either company, perhaps indicating that B&N did not consider it a serious offer.
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Posted by ICv2 on February 24, 2014 @ 12:54 am CT