Barnes & Noble Education (NYSE: BNED) stock surged over 150% in intraday trading Friday after Greenhaven Road Investment Management expressed interest in potentially engaging in a transaction with the company.
In a recent filing with the U.S. Securities and Exchange Commission (SEC), Greenhaven disclosed that it had acquired a 9.9% stake in Barnes & Noble Education (BNED). Additionally, Greenhaven has indicated its intention to engage in discussions with BNED’s management and board members regarding various aspects of the business, including strategies, capitalization, and operational issues.
Earlier this month, on May 1, Greenhaven, in partnership with Outerbridge Capital Management, presented BNED’s board with a preliminary, non-binding recapitalization proposal valued at $84.5 million.
In response to the proposal, Barnes & Noble Education established an Alternative Transaction Committee to evaluate the offer. The committee eventually rejected the proposal but noted that it “could reasonably be expected to lead to a superior transaction.” This superior transaction would require adequate debt and/or equity financing to gain board approval.
Following the committee’s rejection, Outerbridge Capital Management withdrew from the negotiations, leaving Greenhaven to pursue the transaction independently.
Barnes & Noble Education (NYSE: BNED) Stock Price Action
BNED stock soared 152.67% to close at $0.45 on Friday. Its value increased by 54.75% this week. Trading activity has witnessed 71,541,133 (71.54 million) shares changing hands, well above the average daily volume of 1.84 million.
