Breaking News: Borders for Sale; Largest Shareholder May Buy Divisions

Pretty shocking news: Borders is putting itself up for sale or may sell divisions. It has suspended its dividend. It is borrowing some $42.5 million from the hedge fund that is its largest shareholder. That fund may buy parts of the company and is being granted warrants for Borders stock that represent about 20% of the company.

Borders has hired J.P. Morgan Securities and Merrill Lynch to explore the sale of the company or of its divisions “for the purpose of maximizing shareholder value.”

News from the daily newsletter of of Shelf Awareness. Another report from the Detroit Free Press. Borders is headquartered in Ann Arbor, MI.