New York City Barnes & Noble announced that Len Riggio, the company’s founder and chairman sent a letter to Barnes & Noble shareholders in connection with the company's annual meeting on Sept. 28. The letter provides Riggio’s perspective on Barnes & Noble’s growth opportunities, the strategic review process, and the precatory shareholder proposal submitted by Ronald Burkle's investment vehicle, The Yucaipa Cos., to amend the company's shareholder rights plan.
"We urge you to reject Mr. Burkle’s attempts by voting in favor of the company’s slate, and against his efforts to undercut our shareholder rights plan," said Riggio.
Riggio continued, "In my view, voting with the company in this important proxy contest provides a better opportunity to build and deliver greater shareholder value. By voting with the company, you vote in support of the leadership team which created the number one bookseller in all the world, and one of the most admired retailers in America."
The company also announced that Glass Lewis, Proxy Governance, and Egan-Jones, three of the four leading proxy advisory firms, have rejected Yucaipa’s nominees. In addition, Glass Lewis, Proxy Governance and Egan-Jones have concluded, along with the Delaware Court of Chancery, that Barnes & Noble’s shareholder rights plan is a reasonable protection for shareholders against the threat that Yucaipa and Aletheia could form a control bloc without paying a premium to shareholders.