Activist investor Ron Burkle has fired the first shot in a proxy battle for the future of Barnes & Noble Inc., the country’s largest bookstore chain.
In a regulatory filing late Thursday, Burkle put forward three nominees for directors, including himself, after peace-pact negotiations with the retailer collapsed earlier in the day. Three board seats are up for re-election this year, including that held by Leonard Riggio, chairman and largest shareholder. With a 19.2 percent stake, Yucaipa Cos., Burkle’s investing arm, is the second-largest shareholder behind Riggio.
On Wednesday, the two sides had appeared on the verge of settling their differences and avoiding a proxy war, enabling the board to focus on the sale of the company. But as the two camps sat down to review final details during a conference call Thursday morning, negotiations broke down, according to people familiar with the situation.
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