BlueShore Capital Sends Letter to Books-A-Million Board of Directors

Share Article

BlueShore Capital, LLC announced today that it has sent a letter to the Board of Directors of Books-A-Million, Inc. announcing and explaining its intention to vote against the proposal made by the Anderson family to acquire all of the outstanding publicly-held shares of the common stock of Books-A-Million.

BlueShore Global Equity Fund, L.P, an investment fund controlled by BlueShore Capital, LLC, majority-owned by Harsha Gowda and other accounts directed by Harsha Gowda (collectively “BlueShore”), collectively hold over 6.3% of the outstanding common stock in Books-A-Million (the “Company”). BlueShore’s letter is to express disappointment with the terms of the proposed acquisition by Mr. Clyde B. Anderson (“Mr. Anderson”) and the Anderson family (the “Andersons”). BlueShore cannot support the proposed acquisition upon the terms described in the news release issued by the Company on April 30, 2012. If such proposal is presented to the stockholders in its current form, for the reasons stated in the letter, BlueShore plans to vote against it.

While BlueShore respects Mr. Anderson and is grateful for his family’s management of the Company through challenging times, BlueShore strongly believes the proposed acquisition by the Andersons substantially undervalues the Company. The proposed acquisition price not only ascribes little value to the business as a “going concern” but also is at a substantial discount to the fair value, as demonstrated in the letter, of the company’s net assets.

For the reasons detailed out in the letter to the Board of Directors, BlueShore finds the proposed acquisition price to be woefully inadequate, and cannot support the current proposal. That said, BlueShore does not categorically oppose a potential transaction by the Andersons or the pursuit of other strategic alternatives. However, in order to support any transaction, the compensation for the shares must be based upon an objective assessment of the Company’s true economic value and not a temporary decline in the Company’s share price.

Notes: BlueShore Capital, LLC is the general partner of the BlueShore Global Equity Fund, L.P., an investment fund founded in 2006 and managed by Harsha Gowda. BlueShore Global Equity Fund invests in the publicly-traded equities of primarily, small to medium-sized companies in the United States and internationally. Please visit for additional information.

For further information, please contact: Tamas Eisenberger at 917-551-8998 or info(at)blueshorecap(dot)com.

This press release is neither a solicitation of a proxy, an offer to purchase nor a solicitation of an offer to sell shares of the Company. No investment advice is being provided by BlueShore Capital or Harsha Gowda. This communication does not constitute an offer to sell or a solicitation of an offer to purchase any interest in any investment vehicle sponsored by BlueShore Capital or Harsha Gowda.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Tamas Eisenberger

Email >