Bill Ackman’s Pershing Square Capital hurt by bankruptcy of Borders Group

February 18th, 2011
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Bill Ackman’s Pershing Square Capital, which currently owns a 31.3% stake in Borders Group (NYSE: BGP) and had promised Borders to help finance a buyout of Barnes & Noble (NYSE: BKS), will undoubtedly suffer from the bankruptcy of Borders that was filed last week.

According to an article from Bloomberg, Mr. Ackman had originally planned to merge Borders with Barnes & Noble in order to form a larger bookstore chain: Barnes & Noble Inc. However, the opposition of Leonard Riggio, the chairman of Barnes & Noble, as well as Borders’ bankruptcy due to its failure to appropriately adapt to digital reading made the merger difficult. Although the bankruptcy will significantly hurt Mr. Ackman’s investment, it may be a benefit for Barnes & Noble as it will most likely increase its sales.
For Detailed Investor Profiles on these Investors, click below:
Pershing Square Capital Management
Pershing Square Capital Management
Related People: Nicholas Botta; Nicholas Botta; Roy J. Katzovicz; Roy J. Katzovicz; Scott Ferguson*; Scott Ferguson*; William 'Bill' Ackman; William 'Bill' Ackman
Related Entities: Leucadia Corporation (NYSE: LUK); Leucadia Corporation (NYSE: LUK); Pershing Square Capital; Pershing Square Capital; Pershing Square IV; Pershing Square IV; Pershing Square LP; Pershing Square LP
Related Article Tags: Shareholder Activists, Corporate Raiders and Proxy Battles; Investment Management and Hedge Fund Firm Mergers, Acquisitions, Spin-offs and Transactions

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