Barnes & Noble urges shareholders to oppose Burkle-UPDATE 1

Trade the News

Friday September 10, 2010 09:29:14 AM GMT

* Co urges shareholders to vote for its director slate

* Says Burkle trying to form control bloc w/ other player

* Shares up 0.5 pct in morning trading

NEW YORK, Sept 9 (Reuters) - Barnes & Noble Inc, currently the object of a proxy battle by billionaire investor Ron Burkle, sent shareholders a letter urging them to vote for its board nominees and to reject a proposal from Burkle.

In the letter sent on Thursday, the book store chain said Burkle was seeking to gain control of the company without paying full value and his proposal to let investors buy up to 30 percent of shares, instead of the current 20 percent limit, was "self-serving."

Barnes & Noble said it believed Burkle, through his investment vehicle Yucaipa, would like the ability to form a control bloc with another Los Angeles-based investor, Aletheia Research & Management.

Yucaipa and Aletheia could not immediately be reached for comment.

Barnes & Noble shares were up 19 cents, or 1.2 percent, at $15.56 on the New York Stock Exchange. (Reporting by Martinne Geller, editing by Gerald E. McCormick)

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