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General Growth Properties, Inc Message Board

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  • hawkstang hawkstang Dec 6, 2010 10:21 AM Flag

    Ackman offers to finance Barnes noble buyout

    I agree that the traditional bookstores are going the way of the Doe Doe Bird.

    I see the future bookstores in malls reduced in size by 50% to 10,000 sf. I also agree that there is too much saturation in markets with B&N and Borders, so one will have to go.
    That's a lot of GLA that mall operators will have to renovate and re-lease.
    On the otherhand, one operator in those markets, with significantly reduced occupancy costs will probably make a good business plan.

    Ack's way out of Borders could very well be to get control of B&N and then put Borders into BK. In BK, he can cancel the leases he does not want and then merge the good parts of Borders with B&N.
    A merger of the good part of Borders with B&N and then a significant skinnying down of the new merged company could result in a nifty result for Ack.

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    • Interesting thought, Hawk. Yet, Ack would have to overcome the potential large loss on his Borders stake (if filing for BK) by a very increase in his value on the B & N holding. I'm not sure how or if his numbers would work on that.

      Glad I'm not in that seemingly risky proposition!


      • 1 Reply to dabqs
      • Hawk, As a side note, maybe Ack's thought is that he will lose less if he takes this route than if he allows things in the industry to continue as they are.

        Even if his strategy is that he will simply lose less, it would still be an improvement of his situation.

        Just a thought, since I am not following this B & N/ Borders situation.


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