Elliott Management Corp. has selected banks to lead a combined initial public offering of Barnes & Noble Inc. and Waterstones Booksellers Ltd., according to people familiar with the matter. The hedge fund, which owns both book retail giants, is planning to list the merged entity in London, marking one of the most significant moves in the book publishing industry in years.

Elliott acquired Waterstones in 2018 and took Barnes & Noble private in 2019, paying approximately $683 million for the American retailer. Combining the two chains would create a transatlantic book retail powerhouse with hundreds of stores across the US and UK. The London listing reflects Elliott's confidence in European markets despite ongoing volatility in global IPO activity.

The move signals a bet on the durability of physical bookstores amid ongoing competition from online rivals. Barnes & Noble, the largest US bookstore chain, and Waterstones, Britain's biggest bookseller, both weathered pandemic disruptions and shifting consumer habits. An IPO would give Elliott an exit from investments made during its acquisition spree, while providing capital for further expansion.