Sandell Believes Barnes & Noble Should Not Be Stand-alone Public Company

(RTTNews) - Sandell Asset Management Corp., a private, alternative asset management firm, said it has acquired a meaningful ownership stake in Barnes & Noble, Inc. (BKS), the nation's largest specialty book retailer. Sandell publicly released the following letter to the board of directors of the book retailer.

According to Sandell, the current approximately $520 million market value of Barnes & Noble is unconscionably low and fails to reflect the true value of the company.

Sandell said in its letter that it believes Barnes & Noble should not be a stand-alone public company.

"It is our opinion that the public market for retail stocks is contributing to a risky and inhospitable environment under which the stock price of Barnes & Noble may not fairly reflect its intrinsic value anytime in the foreseeable future if it remains a stand-alone company," Sandell said.

According to Sandell, a value of $12.00 per share, and possibly higher by a financial sponsor, could be justified in a going-private transaction. Stakeholders would be better served by Barnes & Noble operating as a private entity or as a division within a larger organization.

The investor said it views Barnes & Noble Stores, with its 633 stores, as "beachfront" property that may hold significant strategic value to Internet or media companies seeking a retail presence.

Sandell added that it seeking a dialogue with the board of directors of the company as soon as is possible.