On the fourth and final day of testimony in Ron Burkle’s Yucaipa Delaware court suit challenging Barnes & Noble’s poison pill, board director Michael del Giudice testified that any investor holding more than 20 percent of the book seller’s shares decide to vote against the poison pill at the annual shareholder meeting in November, that move would itself would trigger the pill. “If they have an agreement or understanding to do so, that’s the problem,” said Del Giudice. But when pressed to define what, exactly “the problem” was that could trigger the pill, Del Giudice was more vague: “I don’t […]
Legal
BN Trial Zeroes in on Possible Burkle-Aletheia Alliance
On day three of the case brought before Delaware court by Ron Burkle’s Yucaipa challenging Barnes & Noble’s poison pill, testimony from expert witnesses finally delved into what’s been openly speculated about for months: if Burkle is able to wage the proxy fight he wants at the upcoming annual meeting this fall, it would hinge on an alliance between Yucaipa, and its more than 19% stake in BN, and the next-largest stockholder, money management firm Aletheia Research & Management, with a more than 16% stake in the company. Testifying on behalf of Yucaipa, CEO of MacKenzie Partners Inc. Daniel Burch […]
Shack Attack
One of the bestselling inspirational books ever has turned from success to suits. As the LAT reports, author of The Shack William Paul Young is engaged in complex litigation against his former partners, Wayne Jacobsen and Brad Cummings at Windblown Media, and Hachette Book Group has been drawn in as well. The dispute, focused on money but also involving copyright and the movie rights, seems to stem from the original working agreement behind the book, which was an oral understanding arrived at long before the success that has led to sales of at least 8 million copies in the US […]
Riggio Contradicts Himself on the Stand
Testifying Friday in a Delaware courtroom in the case brought by Ron Burkle’s Yucaipa challenging Barnes & Noble’s poison pill, chairman Len Riggio said of the defense plan adopted by the board, “It’s about the company.” But in a videotaped deposition before the trial played in court, Riggio said “the pill was about me and my family.” At another point in the deposition, he said, “I have a strong preference for being the largest shareholder of Barnes & Noble, being its founder.” Riggio was vaguer on the point raised in the first day’s testimony by Barnes & Noble board member […]
Lively Testimony at BN Trial
Coverage of the first day of testimony in Ron Burkle’s lawsuit against Barnes & Noble in Delaware makes for fascinating, if not crystal clear, reading. Burkle indicated that he considered–but then rejected–a buyout bid for BN last year at $25 a share. (The stock now trades for under $13, its lowest point in years.) He accumulated stock last fall because he thought the company was historically cheap–“This was one of those things you would look back on and say ‘this could never happen again'”–but on that point he’s already been proven wrong by the market. Burkle is considering nominating his […]
Logic Prevails As Penguin Canada and Davidar Settle Rundle Lawsuit–And She’ll Return to Work
Former Penguin Canada president David Davidar’s lawyer Peter Downard has indicated in a brief statement that Lisa Rundle’s lawsuit alleging unlawful dismissal and sexual harrassment has been settled. He said in an e-mail, “we can now advise that all allegations have been addressed and all matters resolved to the satisfaction of all parties.” Downard added, “None of the parties will be commenting further to the media.” Penguin Canada spokesperson Yvonne Hunter also says “everything has been settled.” And in Wednesday’s announcement of Mike Bryan’s appointment as president of Penguin Canada, the company indicated that Rundle will return to work at […]