Los Angeles billionaire Ronald W. Burkle sent a letter to Barnes & Noble Inc. shareholders accusing the company’s chairman, Leonard Riggio, “of self-dealing, approving business deals that benefit himself and his family,”
the
Los Angeles Times
reported.
Riggo acquired Barnes & Noble when it was a single store and built it into a large chain.
Burkle’s investment firm, Yucaipa Cos., “owns about 19% of the company and wants to buy more,” the article said. A “poison pill” plan currently prevents investors from owning more than 20% of the shares without board approval. Burkle is seeking three seats on the company’s board.
The Los Angeles investment firm said it is unfair that … Riggio and his family, combined, can own about 33% of the bookseller but no entity can own more than 20%…. Riggio alone owns almost 30%. The Yucaipa letter want on to say that Riggio is running Barnes & Noble like a private business. Barnes & Noble paid “almost $70 million in lease payments for office space, warehouses and bookstores owned by entities in which the Riggio family has majority or minority interest,” it said.
Analysts have recommended that Barnes & Nobel begin selling some of its 717 stores, the
LA Times
article said. (Source:
Los Angeles Times,
Aug. 31, 2010.)
-
679 reads