Barnes & Noble, the giant bookstore chain, said Tuesday afternoon that its board was considering a sale of the company, possibly to an investor group led by its chairman and founder, Leonard Riggio.
The retailer said its board decided to explore a possible sale and other strategic alternatives because its stock was “significantly undervalued.” It said a special committee of its board had hired Lazard as its financial adviser and Morris, Nichols, Arsht & Tunnell its legal adviser to help evaluate the company’s options.
Shares of Barnes & Noble jumped more than 25 percent in after-hours trading on Tuesday, rising $3.28, to $16.12. The retailer disclosed that it was considering a possible sale after the stock market closed.
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