Buying out Barnes & Noble would give its much smaller rival, Borders Group, a bigger and firmer stake in the digital world, but some analysts said combining the two largest companies in the shrinking realm of traditional book selling could hurt both – perhaps irreparably.
Activist investor William Ackman and his investment firm announced in a regulatory filing Monday that they had offered to finance a $963 million bid by Borders for Barnes & Noble Inc.
The offer of $16 per share is about 21 percent above Barnes & Noble shares’ closing price Friday of $13.38. But analysts said the price still might not be enough for the leaders and shareholders of a company that just won a bitter battle against an effort by Los Angeles billionaire Ron Burkle to increase his 19 percent stake in the company.
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