Quote:
Originally Posted by DMcCunney
Actually, Borders might be that dismal with good management. The fundamental problem is declining traffic, which is biting B&N, too,
But while B&N waiting for Borders to go belly up and buy the useful bits cheap is a reasonable notion, B&N may not have that option. Borders has a hedge fund as a minority investor, which is committing to help raise the money to let Borders make a takeover bid. If the price offered is high enough, B&N's board may choose to accept it. The board represents the shareholders, and most shareholders are primarily concerned with the price of the stock, and hence the value of their holdings.
Whether the combined company will be viable is another question.
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Dennis
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And thus we see major flaw inherent in joint-stock capitalism: it's inherent myopia making it incapable of looking beyond short term fluctuations of share prices. Quite sociopathic, frankly.