Thursday, January 8, 2009

Ron Burkle On A Buying Spree

Last week Ron Burkle, through his investment vehicle Yucaipa Companies, disclosed an 8.3% "active" ownership stake in Barnes & Noble, Inc. (BKS) and announced his belief that the shares are undervalued. His average cost is $14.68/share. We estimate 20% of BKS shares are held by activist investors; 25% is held by the Chairman/Founder.

Today Burkle announced he's spent about $100M to acquire a 7.0% stake in Whole Foods Market Inc. (WFMI) since November 24th at an average cost of $10.04/share.

Position: None