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

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 18,271.05 -14.69 -0.08%
Nasdaq 5,101.38 10.59 0.21%
S&P 500 2,130.25 -0.57 -0.03%
Treasuries 2.22 0.03 1.51%
Data as of 10:48am ET
Company Price Change % Change
Apple Inc 132.48 1.09 0.83%
Hewlett-Packard Co 35.32 1.49 4.40%
Bank of America Corp... 16.76 0.02 0.15%
AT&T Inc 34.87 -0.20 -0.57%
Micron Technology In... 27.49 0.59 2.19%
Data as of 10:27am ET
Sponsors

Sections

Philip Morris and British American Tobacco have filed lawsuits against the British government over a law that bans brands from cigarette packages. More

Chelsea Clinton took the stage during Internet Week New York to discuss a new report that looks at the state of women around the world. More

More than 3.5 million people's sexual preferences, fetishes and secrets have been exposed after dating site Adult FriendFinder was hacked. More

Sarah Kauss launched S'well to rid the world of plastic water bottles. In five years, she's sold 4 million of her stainless steel bottles. More

Rents increased 4% in April from last year while home values only rose 3% during the same time period. More