NEW YORK (AP) -- Shares of Books-A-Million Inc. plunged Wednesday after the family that controls the bookseller withdrew its buyout offer of about $22.9 million.
THE SPARK: Late Tuesday, the Birmingham, Ala., company announced that Executive Chairman Clyde Anderson and other family members were no longer seeking to purchase the remainder of the bookseller's shares that they didn't already own.
Books-A-Million said that the Anderson family talked about its proposal with the company's advisers and a special committee of board members and decided not to pursue the acquisition at this time.
THE BACKGROUND: In April Anderson and other family members bid $3.05 to buy the shares that they didn't already own. At the time the family had about a 53 percent stake in Books-A-Million. If the deal had gone through, it would have made Books-A-Million a private company.
Anderson was named executive chairman in March. He had served as the company's CEO since 2009.
After Borders liquidated last year, Books-a-Million became the nation's second-largest traditional bookstore chain. It currently runs 257 stores in 31 states and the District of Columbia under its own brand and others including Books and Co., 2nd & Charles, and Bookland.
SHARE ACTION: Books-A-Million's stock tumbled 58 cents, or 18.3 percent, to $2.59 in midday trading. The shares traded as high as $3.79 in mid-March. The dropped as low as $2.04 in mid-October.