Ackman is desperate to find a way out of the Borders book store disastrous investment
Borders has been one of his worst messes
BUSINESSDECEMBER 6, 2010, 7:23 A.M. ET Ackman Offers to Finance Borders Buyout of Barnes & Noble Article Stock Quotes Comments MORE IN BUSINESS »
BY MATT JARZEMSKY
Activist hedge-fund manager Bill Ackman reported a 37% stake in Borders Group Inc., up from 31% as of May, and said he would be prepared to finance the bookseller's purchase of larger rival Barnes & Noble for about $900 million.
The proposed $16-a-share offer for Barnes & Noble compares with the book chain's $13.28 ...
I saw a post (may not have been by you) that discusses some stock/warrants to be priced after close today. Not sure how it affects us, but would love your discussion on it. Can't fine the original post.
If Ack could pull this off it would be quite impressive.
In today's retail world the book store is going the way of the record store.
The average book store is about 20,000 sf in a mall and there are many super stores and stand alone stores that are 30,000-60,000 sf. These dinosaurs are dying so there is only room for one national chain operator. Most in the industry thought the only hope for B&N was to outlast Borders, who would go BK and allow B&N to take over their market share.
Seems like Ack may have it the other way.
In the short term this will be a negative for the mall owners as many book stores will either close or significantly reduce their size. But in the long run, the mall operator is better off with a healthy, strong bookstore operator, rather than having two weak operators who are on the brink.
I think Ackman might pull it off as he used to have a Barnes and Noble stake.
I'm just saying if he had 'do overs' he wouldn't have touched Borders.
Borders got in a war with Barnes and Noble and one of their HUGE problems is all of their stores are very close to each other because they were trying to decimate the other and it just hurt both of them.
Now there will have to be store closings and the book thing is going away and will require fewer stores.
I'm a big Ackman bull but I am a realist to and I'm just saying Borders hasn't been no picnic like GGP has been.