Ackman's Pershing Square Raises Stake in Borders (BGP) By More Than 3M Shares

In an amended 13D filing after the close Friday on Borders Group (NYSE: BGP), William Ackman's Pershing Square Capital hedge fund disclosed they raised their stake in the book retailer to 17.1% (10,075,580 shares).

Ackman's hedge fund held 6,855,580 shares of Borders at the quarter ended September 30, 2007.

Ackman also owns a large stake in Borders' rival Barnes & Noble (NYSE: BKS).

What could be notable here is that Borders' executives have also been adding to their positions as the stock trades just above their lows. Today, it was disclosed that CEO, George L. Jones, recently bought 50,000 shares.

Recently an analyst at Stifel Nicolaus said Borders management showed evidence a turnaround could be happening. Stifel has a Buy rating and $25 price target on Borders. The stock is currently trading at around $12.

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."

Spencer Capital Recommends Board Member for Borders (BGP)

In an amended 13D filing after the close on Borders Group (NYSE: BGP), 7.9% holder Spencer Capital disclosed that they recently suggested to the company that Glenn Tongue, Managing Partner of T2 Partners Group, LLC, be added to the Board of Directors.

From the Filing:

" As a result of conversations with various representatives of the Company, the Spencer Capital Filers concluded in late September 2007 that the Company's Board of Directors should include at least one representative of the Company's significant shareholders. The Spencer Capital Filers concluded that one or more such directors could enhance the Board's deliberations and decisions by presenting to the Board shareholder perspectives on matters under consideration and by bringing focus to Board efforts to maximize shareholder value. Accordingly, on September 25, 2007, Dr. Shubin Stein asked Glenn Tongue, Managing Partner of T2 Partners Group, LLC, whether he would be willing to serve on the Board and work with the Spencer Capital Filers to seek representation on the Board. Mr. Tongue advised Dr. Shubin Stein that he would be willing to serve on the Board and that he and the T2 Filers would work together with the Spencer Capital Filers to encourage the Company to add him to the Board. Later on September 25, 2007, in a conversation with George Jones, chief executive officer of the Company, Dr. Shubin Stein requested that the Company add Mr. Tongue to the Board."

Spencer Capital Discloses 6.8% Stake in Borders Group (BGP), Discloses June Talks

In a 13D filing on Borders Group (NYSE: BGP), Spencer Capital discloses a 6.8% stake (4,008,101 shares) in the company.

In the filing the firm said, "In late June 2007, representatives of the Filers had conversations with the chief financial officer of the Company concerning the business of the Company. The Filers intend to seek to engage in further discussions with members of the board of directors or management of the Company and to discuss with them the business of the Company. Based on discussions with these or any other representatives of the Company, the Filers may formulate plans or proposals with respect to the Company."

Also remember, Williman Ackman's Pershing Square Capital owns an 11.7% stake in Borders. Pershing Square also holds a big stake in Borders' rival Barnes and Noble (NYSE: BKS). There has been talk in the past he could push the two to merge.

It is not great news for management, but possibly good for investors, when two activist investors are in your top 4 holders.

Bill Ackman's Pershing Square Liquidates Wendy's (WEN) Stake

In an amended 13G filing after the close yesterday on Wendy's International Inc. (NYSE: WEN), activist investor Bill Ackman's, though his Pershing Square Capital hedge fund, disclosed a 5K stake in the company. This is down from the 6.42 million share stake disclosed in a 13F filing for the quarter ended September 30, 2006.

Ackman was instrumental in pushing Wendy's to spin-off its Canadian Tim Horton unit, which occurred in March.

Recently, Ackman has built large stakes in book retailers Borders Group Inc. (NYSE: BGP) and Barnes & Noble (NYSE: BKS) - calling both companies undervalued.