Ackman's Pershing Square Changes Filing Status on Borders Group (BGP) to 13D, Stake Unchanged

In a 13D filing on Borders Group, Inc. (NYSE: BGP), William Ackman's Pershing Square Capital disclosed an 11.7% stake (6,855,580 shares) in the company and said the company contacted them about certain corporate governance and other matters including the composition of the Board of Directors.

The 11.7% stake disclosed in today's' filing is identical to the shares held by the firm at quarter ended June 30, 2007. Pershing Square previously filed its position in a 13G filing, which would indicate a "passive investment."

Pershing Square said the change in filing status from 13G to 13D was not related to activities that have the purpose or effect of changing or influencing control of the company.

From the Filing:

"Representatives of the Issuer recently solicited Pershing Square's views regarding certain corporate governance and other matters including the composition of the Issuer's Board of Directors. The Reporting Persons filed this Schedule 13D to permit free communication between the Issuer and Pershing Square on this and other topics.

Prior to the date hereof, the Reporting Persons had on file with the Securities and Exchange Commission a Schedule 13G with respect to their beneficial ownership of Common Stock. Although the Reporting Persons do not believe that Pershing Square's providing its views or engaging in communications as described above would constitute activities that have the purpose or effect of changing or influencing control of the Issuer, the Reporting Persons are filing this Schedule 13D in order to remove any possible impediment to providing such views or engaging in such communications."