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Karen Finerman: This Is 'Absolutely Ridiculous!'

The proxy battle at Barnes & Noble comes to a head on September 28th and after combing through their books, Karen Finerman is outraged.

As you may know, Barnes & Noble is locked in a bitter proxy fight with billionaire investor Ron Burkle over the future of the nation's largest bookseller.

Burkle, whose Yucaipa Companies investment firm owns 18.8 percent of Barnes & Noble, has accused Chairman Leonard Riggio, who founded the chain, of mismanaging Barnes & Noble for his own benefit. Riggio owns 28.2 percent of the company's shares and is its top shareholder.

Dissidents want changes on the bookseller's board of directors. Barnes and Noble has reponded with a competing proposal along with allegations that dissidents are in cohoots to take over the company.

“I read the proposal (sent by Barnes & Noble) which included an investor presentation and I’ve got to tell you the numbers they came up with 2014 look absolutely ridiculous,” says Karen Finerman.

She says they expect ebitda to double by 2014.

“If Barnes & noble wants shareholders to rely on these projections to vote with them in the proxy battle, (provide incentives to) the management team so they don’t get paid unless they reach these goals.”

She doesn't see that happening anytime soon. So what's the trade?

“I’m short Barnes & Noble,” Finerman says.

Shareholders are scheduled to vote at the Barnes & Noble's annual meeting in New York on September 28.

* Hear more from Karen Finerman including how the Barnes & Noble math plays out when she applies it to herself! Watch the video now.

Read More:
Barnes & Noble, Burkle each win support in fight




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Trader disclosure: On Sept. 22th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova Owns (APA), (AAPL), (ARUN), (BMO), (C), (GS), (IBM), (HES), (JOYG), (XBI), (NBR), (NOV), (OXY), (ORCL), (PEP), (POT), (RSH), (SLB), (SU), (SPLS), (RIG), (UPL), (MA), (VRTS); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Finerman owns (AAPL); Finerman’s firm owns (BKS); Finerman and Finerman’s firm owns (BAC); Finerman and Finerman’s firm owns (JPM); Weiss owns (AU), (UXG), (NIHD), (SF), (PJC), (KBW), (QCOM), (AGU), (BAC), (POT), (VZ)

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