Elliott Management Corp. has invited investment banks to pitch for roles on an initial public offering of its book retail businesses, according to people familiar with the matter. The activist hedge fund owns both Barnes & Noble Inc. in the US and Waterstones Booksellers Ltd. in the UK, creating a transatlantic publishing empire.

The potential London IPO would mark a significant strategic shift for Elliott, which acquired Barnes & Noble in 2019 for $683 million and Waterstones in 2018. The move comes as the book retail sector continues to evolve amid changing consumer habits and competition from online retailers. Elliott has been working to revitalize both chains since the acquisitions.

An IPO would provide Elliott Management with an exit opportunity from its retail investments while potentially capitalizing on the enduring appeal of physical bookstores. The dual-brand strategy across the Atlantic could attract investors interested in the cultural significance and steady cash flows of traditional book retailing. The timing suggests Elliott sees favorable market conditions for a public offering of retail assets.