B&N legal battle cost $10m

B&N legal battle cost $10m

<p>Barnes &amp; Noble has revealed a cost of almost $10m fighting off the legal challenge to its poison pill takeover defence, as it announces a first quarter loss of $63m.</p><p>The US retailer has been involved in a battle for control of the business after it put itself up for sale last month.</p>Billionaire shareholder Ron Burkle, who owns almost 20% in the business, mounted a legal challenge in a bid to take control of the company. However, this bid was rejected earlier this month with a Delaware judge saying Burkle was unlikely to offer shareholders a sufficient premium. <p>Leonard Riggio, B&amp;N&#39;s chairman and majority shareholder, is seen as the likeliest to lead a takeover.</p><p>Burkle&#39;s legal challenge has cost Barnes &amp; Noble to the tune of $9.5m, for the first quarter ending 31st July 2010. The retailer said it expects further legal costs to be incurred. Its total loss was $63m. Total sales were $1.4bn, up 21% year on year. Web sales also increased 42% to $145m.<br />Store sales were down 2% to $1bn. </p><p>B&amp;N also revealed one year after it began selling e-books, it has a larger market share in digital books than it does in physical. </p><p>William Lynch, Barnes &amp; Noble c.e.o., said: &quot;As we have previously stated, the company is allocating significant financial resources to strengthen its digital businesses in fiscal 2011 to maximise our ability to power growth and capture share of the emerging digital market. </p><p>&quot;We are encouraged by our results to date, which are ahead of plan, and remain committed to<br />transforming Barnes &amp; Noble to a company committed to expanding and enhancing the reading experience for book lovers and college students.&quot; </p>