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Borders Bankruptcy ?Very Low Probability? Merger with B&N Possible Date: 2/3/2010 |
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Bill Ackman, whose Pershing Square Capital Management hedge fund is the largest shareholder in Borders Group, told CNBC in an interview on Tuesday that he saw a Borders bankruptcy as ?a very low probability event.? ?The company trades as if it were going to go bankrupt,? he noted, with the stock price around $1, but felt that the company had ?stabilized itself? over the past year under the leadership of recently departed CEO Ron Marshall (see ?Borders CEO Resigns?). Ackman mentioned the possibility of a merger with Barnes & Noble more than once. ?It may be part of an industry consolidation at some point, or stay as a stand-alone company,? he said. Asked why he owned Borders rather than its larger competitor (currently being accumulated by financier Ron Burkle), Ackman said, ?I like Borders? risk-reward better from here.? |
| Source: ICv2 |
