Waterstones owner Elliott to buy Barnes & Noble in $683m deal

Barnes & Noble, the largest bookseller in the US, has agreed to be bought by Elliott Management for around $683m in cash.

Elliott, which acquired Waterstones - the UK's biggest book retailer - last year, will pay $6.50 per share for the US chain. This is a 43% premium to the share price on 5 June, which was the day before reports of a deal began to surface.

James Daunt, the chief executive of Waterstones, will also assume the role of CEO of Barnes & Noble once the transaction has completed, and will be based in New York. Both chains will continue to be operated separately.

Barnes & Noble founder and chairman Leonard Riggio said: "We are pleased to have reached this agreement with Elliott, the owner of Waterstones, a bookseller I have admired over the years. In view of the success they have had in the bookselling marketplace, I believe they are uniquely suited to improve and grow our company for many years ahead.

"I am also confident that James Daunt has the leadership ability and experience necessary to lead this great organisation. I will do everything I can to help him make the transition smooth."

James Daunt said: "Physical bookstores the world over face fearsome challenges from online and digital. We meet these with investment and with all the more confidence for being able to draw on the unrivalled bookselling skills of these two great companies.

"As a place in which to choose a book, and for the sheer pleasure of visiting, we know that a good bookstore has no equal."

Barnes & Noble also declared a quarterly cash dividend of 15 cents per share, payable in August.

At 1250 BST, shares in the company were up 10.2% in pre-market trade at $6.57.