MAIN NEWS HEADLINES
May 22 – 29, 2008 Edition
Surface on B&N
Buyout of Borders Barnes & Noble, Inc. is still considering the acquisition of competitor Borders Group Inc., according to May 21 reports from both Reuters and Associated Press. Rumblings of the buy saw Borders shares rise 14 percent.
“We are looking at it,” said Mary Ellen Keating, spokeswoman for Barnes & Noble. She said the company had already said it would consider purchasing Borders. The story reportedly originated in the Wall Street Journal which reported that a team of “executives and advisors” has been reviewing a possible acquisition.
Borders shares were up 81 cents or 12.8 percent to $7.16 and Barnes & Noble stock rose 55 cents, or 1.8 percent, to $30.50 on May 21.
Borders, the second largest book retailer behind Barnes & Noble, has struggled in recent months with poor performance and liquidity. Analysts say Barnes & Noble can afford to wait until Borders’ financial situation worsens before making an offer, according to the Reuters story in the Guardian, UK.