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Recommend Is There Finally Hope For Mom And Pop Bookstores? (Email)

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Borders Books And Music admitted this morning to being broke and was forced to ask their largest stockholder, Pershing Square Capital Management, who agreed to loan Borders $42.5 million. Pershing Square will also receive options to buy a 19.99 percent stake in the company at $7 a share.

An emergency sale to Barnes & Nobel is being considered but Barnes & Nobel has yet to be approached.


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