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The intention is to operate the businesses for longer-term profit and stock appreciation; this isn't about a quick sell. The hedge fund, which owns 41% of Borders if they exercise their warrants (and 37% if they don't), is willing to make an all cash offer for B&N. That puts Burkle out of the picture but leaves room for the Riggio family to stay in. Burkle has no interest in the book business; the Borders crew do.
Borders has international connections; B&N does not and has expressed zero interest in expansion. Borders is a minority holder in Kobo which is very much interested in, and actively playing in, non-US waters. Combining B&N with Borders: taking the best of the retail locations; breathing new life into the textbook college business; merging back-end and web businesses; leveraging warehouse and returns mechanisms; diversifying merchandise (ie not just books); finding synergies between the Nook and the Kobo, its customers and its markets around the world ... it's not all crazy talk.
But again: wait till Borders financials are reported Thursday and let's see what other details of the offer emerge.
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