With no buyer in sight, bookseller Borders Group has been forced to give an activist hedge fund an bigger say in its future.
The Ann Arbor, Mich.-based company issued warrants for 5.15 million shares to Pershing Square Capital Management, already its largest shareholder with a nearly 29% stake. As part of a March agreement under while Borders hung out a “for sale” sign, without a deal to sell or restructure by Wednesday, the chain had to issue the $7 warrants, which are valid for six years.
Borders runs more than 1,100 stores, and Ackman has been pushing a possible deal with online bookseller Amazon.com.
Genna GarverBy Genna Garver, John Brunjes, and Cheri Hoff of Bracewell & Giuliani -- On Oct. 27 the Private Fund Investment Advisers Registration Act of 2009 (H.R. 3818) moved one step closer to becoming law with the 67-1 approval of the U.S. House of Representatives Committee on Financial Services (the "Bill"). More...
Investors this week announced the formation of NewWorld Capital Group, a private equity firm that will invest in middle-market companies and related infrastructure projects in the cleantech sphere. More...