Burkle’s Yucaipa Cos. to appeal dismissal of lawsuit against Barnes & Noble over ‘poison pill’

Burkle to appeal dismissal of Barnes & Noble suit

NEW YORK — Billionaire financier Ron Burkle said Thursday he will appeal the dismissal of his lawsuit against bookseller Barnes & Noble over its shareholder rights plan.

The Delaware Court of Chancery in August rejected Burkle’s claim that the company’s “poison pill” limiting any one shareholder’s stake to 20 percent was unfair.

Burkle, whose Yucaipa Cos. has a 19 percent stake in the company, has criticized Barnes & Noble’s management and said the shareholder rights plan unfairly favors chairman Leonard Riggio and his family.

Burkle nominated three members to Barnes & Noble’s board of directors, initiating a proxy fight after the suit was dismissed. Riggio and two other directors are up for election or re-election at the Sept. 28 annual shareholder meeting.

Burkle has said he does not want to take over the company but wants a stake larger than 20 percent to “give stockholders a voice,” and he said Delaware’s highest court should hear the case.

“We are not surprised Mr. Burkle cannot accept defeat in the baseless litigation he brought against Barnes & Noble and that he would now force the company to incur further legal costs to advance his self-serving agenda of gaining control of Barnes & Noble without paying a control premium to shareholders,” Barnes & Noble spokeswoman Mary Ellen Keating said in a statement Thursday.

The news comes as Burkle and Barnes & Noble’s proxy battle becomes increasingly heated.

On Tuesday, Barnes & Noble sent a letter to shareholders saying Burkle and Aletheia Research and Management Inc., a Los Angeles private equity firm, are trying to take control of the company.

Burkle called the idea Yucaipa is working with Aletheia “absurd” in a letter in response.

Barnes & Noble shares rose 47 cents to $16.10 Thursday.