The owner of the UK's Waterstones and the US's Barnes & Noble is reportedly laying the groundwork for a stock market listing that could provide a significant boost to the London financial scene.
Hedge Fund Explores Public Offering for Bookstore Giants
Elliott Investment Management, the New York-based hedge fund which controls both major booksellers, has initiated talks with potential advisers regarding an initial public offering (IPO), according to a report in the Financial Times. While no final decisions have been made, sources indicate a preference for listing in London over New York.
The combined group, which operates more than 300 shops in the UK and over 600 in the US, represents a multibillion-pound retail force. An IPO is considered unlikely before the end of the summer, given the company's financial year ends in April, but Elliott could appoint investment bankers early next year.
Daunt's Leadership and Market Consolidation
Much of the recent success of both chains is credited to CEO James Daunt, who also runs his own independent bookshop chain. Daunt took the helm at Waterstones in 2011 and has since steered it through intense competition from Amazon while acquiring rivals including Foyles, Hatchards, and Blackwells.
Speaking to the BBC earlier this month, Daunt suggested a public listing felt like an "inevitability" for private equity-owned businesses. "It feels like an inevitability and probably better than being flipped to the next private equity person," he remarked.
A Potential Lifeline for the UK Stock Market
A London listing for such a prominent retail group would be welcome news for the UK stock market, which has faced a steady drain of companies to New York or back into private ownership in recent years. The move would signal confidence in London as a global financial hub.
Elliott, known for its activist shareholder approach, built its high street portfolio by acquiring Waterstones in 2018 from Russian billionaire Alexander Mamut, and purchasing Barnes & Noble for $683m (£510m) in 2019. Its other UK interests include a stake in the food chain Wasabi, and it previously made an unsuccessful bid for retailer Currys.
The fund has also been active in corporate governance, recently exerting pressure on the board of BP, which ousted its chief executive, Murray Auchincloss, this week.
