Hedge Fund May Support Purchase of Barnes & Noble

December 7, 2010 Debbie Jacobs Hedge Fund News

The New York Times Dealbook has reported that William A. Ackman, of the hedge fund Pershing Square Capital Management, has offered to put up $960 million in financing for Borders to buy its larger rival, Barnes & Noble. The hedge fund owns 37.3% of Borders Group, making it the bookseller’s largest shareholder.

Barnes & Noble had announced this summer that it is looking for a buyer. Its drop in success, after many years of being the dominant bookstore chain in the business, can be attributed to the rising success of Amazon.com, the popularity of Amazon’s Kindle and other e-readers, the move by large-scale retailers like Wal-Mart to sell books at discounted prices, and this week’s announcement by Google that it will open its own online bookstore. Now, Borders, the far smaller of these two bookstore chains, may buy out Barnes & Noble.

Amazon, Barnes & Noble, Pershing Square Capital Management, Wal-Mart, William A. Ackman,

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