M&A

13 November, 2009

UPDATE 1-Burkle ups Barnes & Noble stake, cites concerns

* Ron Burkle increase stake to 16.8 percent

* Cites concerns over corporate governance

* Says will continue to monitor company

SAN FRANCISCO, Nov 13 (Reuters) - Supermarket mogul Ron Burkle and his investment arm, Yucaipa, have doubled their stake in bookseller Barnes & Noble Inc (BKS.N) and called for better corporate governance at the company, according to a regulatory filing on Friday.

Burkle -- who reported Yucaipa's 9.6 million shares and 16.8 percent stake in a filing with the U.S. Securities & Exchange Commission -- has been increasing his investment in the company since January, when an earlier filing disclosed a stake of 8.3 percent.

"The reporting persons are concerned with the adequacy and enforcement of the company's corporate governance policies and practices, as evidenced in part by the recent acquisition of Barnes & Noble College Booksellers Inc," the filing said.

It said the parties intend to closely monitor Barnes & Noble's performance and communicate their views to the company's board, management and shareholders.

Barnes & Noble completed its acquisition of Barnes & Noble College Booksellers in September. The approximately $596 million deal increases the store base of the company, which already has more than 750 bookstores, which has concerned some analysts.

Some have pointed to the fact that the college textbook industry is vulnerable to digitization, thereby putting the new physical stores at risk.

Shares of Barnes & Noble closed Friday at $20.05 on the New York Stock Exchange. (Reporting by Alexandria Sage; Editing Bernard Orr)

Source: http://www.reuters.com