Borders, Ackman Eye Barnes & Noble Bid

William Ackman says he is prepared to fund a bid for Borders to buy Barnes & Noble.
By Jeanine Poggi ,

NEW YORK (

TheStreet

) -- Hedge fund manager William Ackman is interested in funding

Borders

(BGP)

in a bid to buy rival

Barnes & Noble

(BKS) - Get Report

, according to a filing on Monday.

Ackman's

Pershing Square Capital Management

said it would fund an offer of $16 per share for Barnes & Noble, valuing the deal at about $963.2 million.

The bid would represent a 20.5% premium over Barnes & Noble's closing price on Friday of $13.38.

Barnes & Noble's stock is surging 18.2% to $15.70 in premarket trading, while Borders is advancing 14% to $1.23.

-- Written by Jeanine Poggi in New York.

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