Barnes & Noble (NYSE:BKS) may have just edged a bit closer to a takeover by its largest rival Borders (NYSE:BGP). Bill Ackman, the head of Pershing Square Capital Management and Borders' largest shareholder, has offered to help finance a potential purchase of Barnes and Noble for $16 a share, or about $900 million, according to a filing with the Securities & Exchange Commission. The bid reflects a 20% premium to Barnes & Noble’s closing price on Friday. Ackman currently owns about 36.5 million Borders shares, or 37.3% of the company,
Borders Group Inc. President Michael Edwards says he has hit on a solution for reviving his money-losing bookstore chain: Be less like a bookstore.
Borders Group reported Wednesday that its loss widened to $46.7 million in the second quarter, compared with a loss of $45.6 million last year. The retailer cited lower revenue for the widened loss.Revenue fell 12% to $526.1 million, from $594.2 million. Same-store sales fell 6.8%.The bookseller said it will add more items besides books in its stores to boost revenue. It is turning its focus to the children’s department by adding more educational toys and games, as well as selling the Build-A-Bear craft kits, and has lowered e-reader prices to drive sales.The company received a $25 million private investment
Borders Group Inc. said Tuesday it will sell its Paperchase Products Ltd. stationery subsidiary to British private equity firm Primary Capital Ltd. for $31 million in order to reduce the retailer’s debt load.The move is Borders latest salvo in its ongoing effort to cut costs and improve profitability since financier Bennett LeBow invested $25 million in the struggling chain in May, becoming the company's largest shareholder, chairman and CEO.Borders said it will continue to buy and carry Paperchase products in its U.S. stores. The book retailer bought a majority interest in U.K.-based Paperchase in 2004 for $24.1 million.It will