Borders Group
(NYSE:BGP) may soon become an activist target after Spencer Capital
disclosed a 6.8% stake in the company along with communications it had
with management. The investment management firm disclosed in a
Schedule 13D
filing with the SEC conversations that it had with the company's Chief
Financial Officer while announcing its intent to have further
discussions with the company's management and board of directors.
The
books, music and movies superstore chain was also targeted not long ago
by Bill Ackman's Pershing Square - an activist hedge fund that also
owns a large stake in
Barnes and Noble
(NYSE:BKS). There was speculation that the famous investor may be
interested in merging the two competitors in an effort to strengthen
their position against key competitors like
Amazon.com (NDAQ:AMZN).
The
involvement of another activist shareholder reignited hopes that the
company may be exploring a merger or other strategic transaction aimed
at unlocking shareholder value. But just how far fetched is this idea?
Well, the company has already seen interest from Pacific Equity
Partners - a private equity firm that expressed interest in the
Australian unit of the company. If there are other interested buyers,
BGP could see itself split-up and sold at a substantial premium to the
current market price. Combined, these factors make BGP a stock
worth watching!
Related CompaniesHastings Entertainment (HAST)Barnes and Noble (BKS)Amazon.com (AMZN)