Briefcase

Investor to back Barnes & Noble bid

NEW YORK – Activist investor William Ackman on Monday offered to finance a $16 per share Borders-led takeover bid for rival bookseller Barnes & Noble Inc.

Ackman and his Pershing Square Capital Management said in a regulatory filing that they would be willing to fund an offer of $16 per share in cash for Barnes & Noble.

With about 60.2 million shares outstanding, that would value Barnes & Noble at about $963.2 million.

That is nearly 21 percent more than Barnes & Noble’s closing price Friday of $13.38 a share. The stock has traded between $11.89 and $24.71 over the past year.

In the filing, Ackman disclosed a 37 percent stake in Borders, up from 31.5 percent in May.

As an alternative to the $16 per share cash offer for Barnes & Noble, Ackman said in the filing he would finance a combined stock and cash offer.

Associated Press

Blankenship news spurs Massey shares

CHARLESTON, W.Va. – Wall Street is cheering the abrupt retirement of Massey Energy Co. Chief Executive Don Blankenship.

Shares of Massey outpaced most major coal stocks, rising $1.75, or 3.5 percent to $52.17 in afternoon trading Monday.

Jefferies & Company analyst Michael Dudas says some investors see Blankenship’s decision to retire as a good omen for a possible sale of the troubled company.

Massey announced after trading closed Friday that Blankenship will retire Dec. 31.

Richmond, Va.-based Massey has struggled with two money-losing quarters since an explosion killed 29 miners at its Upper Big Branch mine in southern West Virginia. The April 5 blast was the deadliest at a U.S. coal mine since 1970 and prompted a regulatory crackdown that Massey blames for cutting production.

Associated Press

Boeing puts hold on 787 assembly

CHICAGO – Boeing Co. puts a three-week hold on assembling new 787s.

Boeing said on Monday that the hold began late last month. It says it is not asking the companies that make parts for the 787 to slow or stop production.

The latest delay comes as Boeing deals with the aftermath of an electrical fire during a test flight last month. The fire and other manufacturing problems are expected to force Boeing to delay delivery of the first 787. It had been aiming to start delivery of the planes early next year.

Associated Press