In a filing with the U.S. Securities and Exchange Commission made public Thursday, Yucaipa Cos. disclosed that two of the funds under its control would distribute shares of the stock they own in Barnes & Noble. Yucaipa, controlled by billionaire Ron Burkle, owns about 19% of B&N stock and is its second largest shareholder behind company chairman Len Riggio. The filing provided few details on the planned dispersal, and didn’t offer any information on how many shares are involved or to whom they will be distributed. The filing merely notes that the purpose of the transaction is to distribute in-kind the B&N shares owned by its YAAF II and YAAP II Parallel funds.
The move spooked other B&N investors who apparently took the news to mean that Burkle was losing confidence in the company and the retailer’s stock price fell 8.8% on the day to close at $16.75.
