I always laugh at things like this.
Borders (BGP) CEO George Jones said yesterday that the company has had “no substantive talks” regarding a sale of the company. Rumor were swirling that Barnes and Noble (BKS) was preparing and offer.
Here is the thing. Jones clearly has had “talks”, just not “substantive” ones. Now, what has to happen when one talks about selling the company at what point the talks go from “just talking” to “substantive”.
Seems to me that the answer to that depends on the person qualifying the talks. Jones has multiple suitors and a company that seems to be on to something with its new concept. That being said, the longer he can drag the process out, allowing for the company’s results to improve, he dramatically increase the price he can get for himself and his shareholders.
For Jones to shorten the process at this point would probably leave money on the table.
Borders is in a sweet spot for both private equity and strategic buyers. A good brand with valuable assets and an appealing price.
This will happen….eventually
Disclosure (“none” means no position):Long BGP, none
