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Borders shareholder guns for Barnes & Noble

borders_barnes.top.pngClick the chart to track the stocks. By Hibah Yousuf, staff reporter


NEW YORK (CNNMoney.com) -- The largest shareholder of bookstore chain Borders, investor William Ackman of Pershing Square Capital Management, is willing to shell out $900 million to takeover rival Barnes & Noble Inc., according to a regulatory filing.

Ackman said Pershing Square Capital Management, which holds a 15% stake in Borders, is prepared to bid $16 per share in an all-cash or stock-and-cash transaction, representing a 20% premium on Barnes & Noble's closing price of $13.28 last Friday.

Shares of Barnes & Noble (BKS, Fortune 500) rallied 17% to $15.50 in afternoon trading, while Borders Group's (BGP) stock surged more than 40% to $1.52 per share.

Barnes & Noble put itself up for sale in August, saying its shares were "significantly undervalued." The company's stock value has plunged more than 30% this year.

At the time, the bookseller's founder and largest shareholder Leonard Riggio said he might join an investor group to buy Barnes & Noble.  To top of page

Index Last Change % Change
Dow 21,080.28 -2.67 -0.01%
Nasdaq 6,210.19 4.94 0.08%
S&P 500 2,415.82 0.75 0.03%
Treasuries 2.25 -0.01 -0.22%
Data as of 7:02am ET
Company Price Change % Change
Bank of America Corp... 23.24 -0.01 -0.04%
Advanced Micro Devic... 11.00 0.02 0.18%
General Electric Co 27.45 -0.04 -0.15%
Chesapeake Energy Co... 5.29 0.11 2.12%
Ford Motor Co 10.93 0.07 0.64%
Data as of May 26
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