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Originally Posted by SensualPoet
Finally, in late Spring, John Malone of Liberty Media (QVC and the Home Shopping Network among other interests) announced he'd be willing to invest $1 billion to buy the 70% not owned by the Rigio's provided the Rigio's stayed on as owners and management (B&N having done so well ...). But time ticks by and, despite both principals saying nice things about each other in early July, this week reports surfaced that Liberty Media was having cold feet. The deal was worth $17 a share; today the stock closed at $15.66 and some analysts are openly pegging the true value at around $14. Still, they are definitely still talking. |
B&N lost 9% more of its value today closing pretty much at $14. That has to be unsettling and certainly suggests the Liberty Media offer of $17 is slipping away. Technically, you could snap up shares at $14 today and, when the Liberty Media deal is signed off in a few weeks, make a cool 21% on your money. Alternately, it might also mean the deal is being discussed at a lower price or perhaps cancelling the offer altogether.
One is reminded of the deal to take over Yahoo! by Microsoft when the deal was $30 and Yahoo! said "no way". Yahoo! has since laid off more than half its staff and trades at $11. Sometimes you need to strike when the iron is hot. Granted recent events in the stock market are unusual but it is sobering. I mentioned before that Liberty Media can take its time given no one was interested in Borders ... why pay more for B&N?