The Deal
Saturday, November 7, 
9:16 pm

Borders reads Ackman a warrant

  Share     E-Mail    Discussion    Print Story

Borders.jpgBorders Group Inc. is telling activist investor Pershing Square Capital Management LP's William Ackman to sign on the dotted line.

Borders is issuing warrants for Pershing Square, which owns 29% of Borders, to own up to an agreement signed in April, according to a Reuters report. The agreement was that if the bookstore did not find a buyer by a prearranged deadline, Pershing would buy an additional 5.15 million shares of common stock on Oct. 1.

Continue reading below

Also on Dealscape

In April, while Borders' strategic review was under way and the second-largest shareholder Barnes & Noble Inc. weighing a bid for the company, Pershing Square made a $42.5 million senior secured loan to the company and acquired 9.55 million warrants to purchase common stock at $7 a share. The hedge fund, which had been pressing the company to sell some of its overseas businesses, also gave Borders a put option to sell those assets to Pershing for $135 million.

Barnes & Noble decided not to acquire Borders and crossed it off of its reading list in August. - Maria Woehr

Dealscape: As Borders shops itself around, a look at its foray into stationary
Dealscape: Borders slashes work force




Post a comment





The Deal Pipeline

Deal Video


Inside The Deal: Linklaters' Schmidt says how regulators handled Pfizer Inc.'s acquisition of Wyeth is an outlier of how others merger reviews will be conducted.


More video...

Crisis On Wall Street
Technology
Deals of The Decade

Community

Industry Insight

Dealing with frozen bank lending

If your bank is not willing to lend, what can you do as your company continues to seek growth?


Judgment Call

The coming age of the renminbi

The Chinese currency will play an increasingly important role in international commerce and finance.


Industry Insight

Banking on PE investments

Howls of protest greeted the FDIC policy statement, but the financial services industry should get over it.


footspacer.jpg footspacer.jpg footspacer.jpg footspacer.jpg footspacer.jpg


©Copyright 2009, The Deal, LLC. All rights reserved. Please send all technical questions, comments or concerns to the Webmaster.