Proxy-advisory firm Glass Lewis & Co. on Wednesday recommended Barnes & Noble Inc. shareholders vote for founder and Chairman Leonard Riggio and his slate of directors, throwing water on a proxy contest being waged by activist investor Ronald Burkle's Yucaipa Cos.
Glass Lewis also recommended that holders vote down Yucaipa's proposal to amend the Barnes & Noble shareholder rights plan, or "poison pill," that effectively caps Barnes & Noble shareholders other than Riggio from accumulating a stake of 20 percent or more of its outstanding common stock.
Burkle had hoped to win the three board seats up for election, as well as the ability to acquire more Barnes & Noble stock. It is likely that the Glass Lewis recommendation will only escalate the increasingly vitriolic war of words between Barnes & Noble and Yucaipa as the Sept. 28 annual meeting draws nearer.
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