03 Sep 2010 21:24:41
The Delaware Court of Chancery in August rejected Burkle's claim that the company's "poison pill" limiting any one shareholder's stake to 20 percent was unfair.
Burkle, whose Yucaipa Cos. has a 19 percent stake in the company, has criticized Barnes & Noble's management and said the shareholder rights plan unfairly favors chairman Leonard Riggio and his family.
Burkle nominated three members to Barnes & Noble's board of directors, initiating a proxy fight after the suit was dismissed. Riggio and two other directors are up for election or re-election at the Sept. 28 annual shareholder meeting.
Burkle has said he does not want to take over the company but wants a stake larger than 20 percent to "give stockholders a voice," and he said Delaware's highest court should hear the case.
"We are not surprised Mr. Burkle cannot accept defeat in the baseless litigation he brought against Barnes & Noble and that he would now force the company to incur further legal costs to advance his self-serving agenda of gaining control of Barnes & Noble without paying a control premium to shareholders," Barnes & Noble spokeswoman Mary Ellen Keating said in a statement Thursday.
The news comes as Burkle and Barnes & Noble's proxy battle becomes increasingly heated.
On Tuesday, Barnes & Noble sent a letter to shareholders saying Burkle and Aletheia Research and Management Inc., a Los Angeles private equity firm, are trying to take control of the company.
Burkle called the idea Yucaipa is working with Aletheia "absurd" in a letter in response.
Burkle, whose Yucaipa Cos. has a 19 percent stake in the company, has criticized Barnes & Noble's management and said the shareholder rights plan unfairly favors chairman Leonard Riggio and his family.
Burkle nominated three members to Barnes & Noble's board of directors, initiating a proxy fight after the suit was dismissed. Riggio and two other directors are up for election or re-election at the Sept. 28 annual shareholder meeting.
Burkle has said he does not want to take over the company but wants a stake larger than 20 percent to "give stockholders a voice," and he said Delaware's highest court should hear the case.
"We are not surprised Mr. Burkle cannot accept defeat in the baseless litigation he brought against Barnes & Noble and that he would now force the company to incur further legal costs to advance his self-serving agenda of gaining control of Barnes & Noble without paying a control premium to shareholders," Barnes & Noble spokeswoman Mary Ellen Keating said in a statement Thursday.
The news comes as Burkle and Barnes & Noble's proxy battle becomes increasingly heated.
On Tuesday, Barnes & Noble sent a letter to shareholders saying Burkle and Aletheia Research and Management Inc., a Los Angeles private equity firm, are trying to take control of the company.
Burkle called the idea Yucaipa is working with Aletheia "absurd" in a letter in response.
