Barnes & Noble will settle a lawsuit filed by investor Ron Burkle so it can avoid a costly proxy fight and concentrate on selling off the company, according to news reports.
The book seller will add two independent directors to its board and assign another seat to Burkle’s firm, Yucaipa, according to the Wall Street Journal citing people familiar with the situation.
The New York Times reported that if there is no deal, Burkle could begin his proxy fight as early as Thursday morning.
If the two sides do come to an agreement, Burkle, who increased his ownership stake last year to about 19 percent, would end his bid to gain more control over the book seller. Burkle has challenged Barnes & Noble’s poison pill strategy, which prevents anyone from taking more than a 20 percent stake in the company without board approval.
• Read the full Wall Street Journal story.
• Read the full New York Times story.
