Borders war? Bids for chain loom
Newspaper reports several private equity firms could make offers for the book and music retailer.
NEW YORK (CNNMoney.com) - A number of large buy-out groups are considering making bids for book and music chain Borders, according to a news report on Thursday. Several private equity firms, including Texas Pacific Group, Bain Capital, Apollo Management and Leonard Green Partners, have held discussions with banks regarding funding for a purchase of the Michigan-based chain, The Financial Times reported, citing people familiar with the matter.
Insiders expect any bids to value the company at more than $25 a share, or nearly $1.8 billion, the newspaper said. Shares of Borders (Research) closed at $22.41 Wednesday on the New York Stock Exchange. The buy-out groups have been waiting for holiday results from Borders to decide whether to proceed with offers, according to the newspaper. On Wednesday, Borders posted strong sales, saying same-store sales at its U.S. sites rose 2.2 percent in the fourth quarter. The company also said its fourth-quarter earnings would be at the higher end of a previously forecast range. The robust sales from Borders could lead the buy-out firms to raise their bids, the report said. But it added that Borders might be less willing to sell, given the encouraging results. ---------------- Do private equity firms drain companies? Click here for more. |
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