Hard to understand why BN would have any interest in a merger. If they just stay out of it, Borders is headed for liquidation. BN has a business plan that is dependent upon Borders going "Bye-Bye". Why would they stand in the way of that. God knows BN has enough retail outlets and does not need the 500+ oversized retail stores, in dulpicate markets. paying above market rents that Borders has to offer.
While I do not expect Borders to make it, if I were short Borders, I would not be greedy and would be thinking about covering.
The Riggio's who control BN, have a history with Ack, and I doubt very much they have any interest in helping him out at Borders.