Ron Burkle is an activist investor and stockholder of Barnes & Noble, Inc. (BN). In September 2010, through his firm, The Yucaipa Companies (Yucaipa), Burkle filed a "Definitive Proxy" to challenge BN's slate of board-of-director nominees at the upcoming stockholder meeting. The proxy was made in response to a ruling against Yucaipa by the Delaware Chancery Court concerning a litigation that rendered inoperative Barnes and Noble's poison-pill provision, which prevented outsiders becoming bulk stockholders.
Burkle differed with BN's founder, chairman and owner of the majority position in the company, Leonard Riggio, concerning BN's long-term strategy. While Burkle desired the enterprise to cede ground to Amazon in the digital reader marketplace and instead concentrated on BN's actual shops, Riggio believed that the Nook eReader must be the centrepiece of the business's strategy. Riggio had to react to the Yucaipa proxy in the short-term and think of a plan of action to keep control of the organization in the long run.
PUBLICATION DATE: November 18, 2011 PRODUCT #: W11508-PDF-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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