Why Barnes & Noble, Inc. Stock Popped Today

Shares of Barnes & Noble Inc. (NYSE: BKS) were up 12% as of 12:00 p.m. EDT Tuesday after an activist investor opened a large stake in the bookselling retail chain and encouraged it to put itself up for sale.

According to a report (may require subscription) from The Wall Street Journal, which cites people familiar with the situation, Sandell Asset Management has opened a "meaningful" stake in Barnes & Noble. In addition, Sandell CEO Thomas Sandell has penned a letter to Barnes & Noble's board lamenting the public market as "contributing to a risky and inhospitable environment for retail stocks," and urged the chain to either find a private buyer, or become part of a larger retail company.

IMAGE SOURCE: THE MOTLEY FOOL.

Source: Fool.com