Click the chart to track the stocks.
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. 
| Index | Last | Change | % Change |
|---|---|---|---|
| Dow | 32,627.97 | -234.33 | -0.71% |
| Nasdaq | 13,215.24 | 99.07 | 0.76% |
| S&P 500 | 3,913.10 | -2.36 | -0.06% |
| Treasuries | 1.73 | 0.00 | 0.12% |
| Company | Price | Change | % Change |
|---|---|---|---|
| Ford Motor Co | 8.29 | 0.05 | 0.61% |
| Advanced Micro Devic... | 54.59 | 0.70 | 1.30% |
| Cisco Systems Inc | 47.49 | -2.44 | -4.89% |
| General Electric Co | 13.00 | -0.16 | -1.22% |
| Kraft Heinz Co | 27.84 | -2.20 | -7.32% |
|
Bankrupt toy retailer tells bankruptcy court it is looking at possibly reviving the Toys 'R' Us and Babies 'R' Us brands. More |
Land O'Lakes CEO Beth Ford charts her career path, from her first job to becoming the first openly gay CEO at a Fortune 500 company in an interview with CNN's Boss Files. More |
Honda and General Motors are creating a new generation of fully autonomous vehicles. More |
In 1998, Ntsiki Biyela won a scholarship to study wine making. Now she's about to launch her own brand. More |
Whether you hedge inflation or look for a return that outpaces inflation, here's how to prepare. More |
