Barnes & Noble Rises on Takeover Speculation

Barnes & Noble Inc. (BKS), the largest U.S. bookstore chain, said there’s “no truth” to speculation that Liberty Media Corp. is preparing to buy the rest of the retailer.

“It’s not accurate,” said Mary Ellen Keating, a spokeswoman for New York-based Barnes & Noble. “There’s no truth to it.”

Robert Routh, a New York-based analyst for Phoenix Partners Group, wrote in a research note today that Liberty may be setting up a $1.5 billion credit facility to help fund a purchase of Barnes & Noble. Liberty, controlled by billionaire John Malone, invested $204 million in the book retailer in August after dropping its offer to acquire the chain.

Courtnee Ulrich, a spokeswoman for Englewood, Colorado- based Liberty, didn’t respond to a request for comment.

Barnes & Noble gained 1.3 percent to $15.30 at 1:30 p.m. in New York, after rising to $16.62 for the highest intraday price since Aug. 4. The shares advanced 26 percent from Nov. 8, when Liberty posted third-quarter results, through yesterday. Liberty Chief Executive Officer Gregory Maffei said on an earnings conference call that day that “we’re excited about the things” the retailer is doing.

Liberty Starz, the tracking stock for the Starz Group media business issued by Liberty, rose 5.9 percent to $67.63.

While Liberty may raise money for an acquisition, a more likely scenario is that it’s looking to restructure the ownership of the Starz LLC unit, Richard Greenfield, an analyst at BTIG LLC in New York, said in a note today.

By making Starz an asset-backed entity, rather than a tracking stock, Liberty would make it easier for a larger acquirer to buy the unit, he said.

Liberty will host an investor day on Nov. 17, and Barnes & Noble will make a presentation. Barnes & Noble released a new version of the Nook Tablet mobile reading device on Nov. 7.

To contact the reporter on this story: Matt Townsend in New York at mtownsend9@bloomberg.net

To contact the editor responsible for this story: Robin Ajello at rajello@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.