Barnes and Noble shares climb 20% following Microsoft rumours

Shares in America's biggest books retailer Barnes & Noble climbed nearly 20% yesterday after a report that Microsoft is considering an offer to acquire its Nook business - B&N's tablet and e-book business and a rival to Amazon's Kindle.

The technology website TechCrunch reported that Microsoft, which already owns 17% of Nook Media, was proposing a $1bn offer to buy Nook's digital assets.