Borders, the second-biggest bookseller in the US, is looking for potential buyers after suspending its dividend in the face of a funding crisis:
Borders said its largest shareholder, Pershing Square Capital Management, agreed to loan it $42.5 million, and will receive options to buy a 19.99 percent stake in the company at $7 a share. Without the financing, Borders may have faced liquidity issues, it said.
“Borders effectively announced this morning that they are out of cash and took a stopgap funding” from Pershing, Credit Suisse analyst Gary Balter said in a research note.
While some analysts raised the possibility of a deal with Barnes & Noble, the company said on Thursday it had not been approached by Borders’ investment bankers, but would review a possible acquisition if it were contacted.
In so many words, there will soon be one less place for Americans to not buy books. But hey, at least we have BLOGS!, which are like books only for stupid people.