Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

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 21,821.86 25.31 0.12%
Nasdaq 6,369.21 -12.98 -0.20%
S&P 500 2,470.87 -4.55 -0.18%
Treasuries 2.29 -0.02 -0.91%
Data as of 3:21pm ET
Company Price Change % Change
Advanced Micro Devic... 14.02 -0.10 -0.71%
Altria Group Inc 66.60 -7.36 -9.95%
Starbucks Corp 53.54 -5.97 -10.03%
Bank of America Corp... 24.09 -0.02 -0.08%
Chesapeake Energy Co... 5.05 -0.01 -0.20%
Data as of 3:06pm ET
Sponsors

Sections

The Congressional Budget Office narrows its projection for when Treasury will run short on money if Congress doesn't raise or suspend the country's debt ceiling. More

One cyberattack in Ukraine could be a blueprint for others. But how likely is it to happen? More

For all the cruelty-free, anti-sweatshop, organic attention you give your individual purchases day to day, your money may be paying for causes you don't want to support. More