On Thursday, shares of bookselling behemoth Barnes & Noble Inc. are rallying, up about 5.5% in afternoon trading after reports surfaced that the company has been involved in talks to sell.
According to StreetInsider, which pins the initial report on Bloomberg, who then cites DealReporter—complicated, I know—Barnes & Noble was reportedly working with financial adviser Guggenheim Securities for six months, talking with many potential buyers like Platinum Equity and Apollo Global Management (APO - Free Report) .
However, the report said that a Barnes & Noble spokesman said that the company was not currently talking to or engaged with any sales process.
Additionally, a company spokesperson told Benzinga “Although we have an obligation as a public company to listen to any proposals or offers from outside parties, we are not engaged in a process at this time.”
While this rumor has some serious flaws, it does follow pressure put on the bookseller by activist investor Sandell Asset Management Corp, which had urged Barnes & Noble’s board to strategically review its business and even consider a sale.
Year-to-date, BKS stock has lost 36% in value. The company currently sits at a #3 (Hold) on the Zacks Rank.
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