Today one of Borders’ largest investors outlined a possible bid to buy Barnes & Noble, effectively merging the two booksellers. According to Barron’s, Barnes & Noble shares rose $2.32 and Borders Group shares rose $1.27 when investors learned of the news.
Here’s more from the article: “In the filing, Pershing’s Bill Ackman, who along with Pershing owns around 42% of the common stock of Borders, reports that his firm has informed Borders they are willing to finance a bid for Barnes & Noble at $16 per share in cash, or a mixed stock and cash considerations.”
What do you think of the idea? Back in August, the Barnes & Noble board of directors announced they are considering selling the company–along with other “strategic alternatives” that might “increase stockholder value.”