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Barnes & Noble's billionaire shareholder Ron Burkle has had his lawsuit challenging the retailer's poison pill takeover defence rejected by a US court.
Reuters">http://www.reuters.com/article/idUSTRE67B3ZD20100812">Reuters reports a Delaware judge said Burkle was unlikely to offer shareholders a sufficient premium in a likely takeover bid, after the billionaire acquired almost 20% in the company.
Vice Chancellor Leo Strine said: "The defendants have shown that their adoption and use of the rights plan was a good faith, reasonable response to a threat to Barnes & Noble and its stockholders."
The ruling came shortly after a brief statement from the American bookseller to Publishers">http://www.publishersweekly.com/pw/by-topic/industry-news/bookselling/ar... Weekly stating: "Barnes & Noble and Yucaipa were unable to conclude an agreement on mutually acceptable terms."
These talks hoped to end Burkle's lawsuit by giving the billionaire representation on the retailer's board.
The chain bookseller put itself up for sale last week, however the resolution of these discussions was seen as key before serious negotiations for the sale of B&N could begin.
Reuters says Leonard Riggio, the retailer's chairman and largest shareholder, is considering a bid for the company as part of a larger investor group.