Elliott Management Corp., which owns Barnes & Noble Inc. and Waterstones Booksellers Ltd., has invited investment banks to make pitches for underwriting and advisory roles on a possible initial public offering of the booksellers, according to people familiar with the matter. Those people spoke on condition of anonymity because the discussions are private.
The private briefings are part of a review that includes the option of listing both chains together in London, though a listing in the United States remains a possibility, the people said. The firm has engaged Rothschild & Co. to advise on the potential transaction.
Sources say no final decisions have been made and there is no guarantee that a transaction will proceed. The invitation to banks to pitch is an early step in the process and does not indicate a completed plan or timetable.
Both Waterstones and Barnes & Noble have continued to operate in the book retail market despite major industry changes following the rise of Amazon.com Inc. Elliott acquired the U.K. chain Waterstones in 2018 and purchased Barnes & Noble, the U.S. bookseller, in 2019 for roughly $476 million.
The discussions remain confidential and those briefed on the matter declined to be identified. The combination of a U.K. and a U.S. chain in a single listing is under consideration, but the parties involved have not settled on a venue or structure.
Implications and context
- The move signals Elliott is exploring options to monetize or reposition its retail book assets, while keeping both regional listing options on the table.
- Rothschild & Co. has been retained to provide advisory support, indicating the firm is preparing for formal engagement with the capital markets should a decision be taken to proceed.
- Any eventual offering would attract attention across retail, publishing and capital markets sectors given the chains' roles in book distribution and retailing.
The situation remains fluid. Market participants and investors will be watching for confirmation of a formal process or the appointment of additional banks, but at this stage Elliott has only requested pitches and no definitive course has been chosen.