Wednesday, 23 July 2014
Last updated 21 min ago
May 1 2012 | 12:31pm ET
Jana Partners' Barry Rosenstein is taking a bit of a bow after his investment in Barnes & Noble paid off in a big way this week.
The activist hedge fund manager made a paper gain of $49.2 million on its 12% stake in the bookseller, after Microsoft announced yesterday that it would invest $300 million in a new unit that will cover B&N's Nook digital reader and college businesses, two of its most profitable business lines.
"The question is, why would anyone short that stock?" Rosenstein asked on CNBC. "We figured we have very little downside. We thought there was a very high probability that some sort of strategic transaction like this would occur."
The Microsoft deal will create a still-unnamed business that will report separately from B&N and that is, at a stroke, worth more than B&N itself with a $1.7 billion valuation. Microsoft will own about 18% of the business, and B&N the rest.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…