Some more thoughts Barnes & Nobel (BKS) and borders (BGP)
The timing of this is odd as Barnes and Nobel is scheduled to release results and have its earnings call tomorrow. Borders has it’s annual meeting tomorrow also. Next Monday and Tuesday feature borders Q1 results and earnings call respectively.
It is very “coincidental” this news leaked out after months of silence just before both companies are schedules to speak to the public and media…no?
Another thing that Borders does have is 1.75 million (and growing) members in its “Borders Rewards” program. These are the “book people” and are the highest valued customers due to their purchasing frequency.
Back in March the following exchange took place during the earnings call:
Bill Armstrong – C.L. King & Associates: “Got it. Okay, obviously one of your biggest competitors, Borders, had a big announcement this morning. Would there be any interest on Barnes & Noble’s part in potentially acquiring Borders?”
Mitchell S. Klipper: “We haven’t been approached by Borders’ investment bankers and if we are, we’re certainly take a good look at the company and put it under review.”
Here is a video with another take on it:
Disclosure (“none” means no position):Long BGP, None
