Why Shares of Barnes & Noble (BKS) Rallied Today

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On Thursday, shares of bookselling behemoth Barnes & Noble Inc. BKS are rallying, up about 5.5% in afternoon trading after reports surfaced that the company has been involved in talks to sell.

According to StreetInsider , which pins the initial report on Bloomberg , who then cites DealReporter-complicated, I know-Barnes & Noble was reportedly working with financial adviser Guggenheim Securities for six months, talking with many potential buyers like Platinum Equity and Apollo Global Management APO .

However, the report said that a Barnes & Noble spokesman said that the company was not currently talking to or engaged with any sales process.

Additionally, a company spokesperson told Benzinga "Although we have an obligation as a public company to listen to any proposals or offers from outside parties, we are not engaged in a process at this time."

While this rumor has some serious flaws, it does follow pressure put on the bookseller by activist investor Sandell Asset Management Corp, which had urged Barnes & Noble's board to strategically review its business and even consider a sale.

Year-to-date, BKS stock has lost 36% in value. The company currently sits at a #3 (Hold) on the Zacks Rank.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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