(Borders article updated from Feb. 2.)

NEW YORK (

TheStreet

) --

Borders

(BGP)

stock is spiking massively a day after investor

Bill Ackman

said he is more confident in the company than he is in

Barnes & Noble

(BKS) - Get Report

.

Ackman, appearing on CNBC's "Fast Money," Tuesday night declared that Borders has a better risk/reward than its rival. This bullish call sent shares surging 23.4% to $1.16 in Wednesday morning trading.

The news follows Ron Burkle's attempt, through his firm

Yucaipa Funds

, to garner a 37% stake in Barnes & Noble. Currently, Yucaipa owns an 18% stake in the company.

The move would match the current stake in Barnes & Noble held by the controlling Riggio family.

Book retailers have been struggling to remain relevant as discounters like

Wal-Mart

(WMT) - Get Report

and

Amazon

(AMZM)

slashed prices on new releases during the holiday season.

As a result, Barnes & Noble reported weaker-than-expected holiday sales, prompting Barnes & Noble management to slash its fourth-quarter outlook.

Similarly, Borders posted a 14.6% plunge in same-store sales during the holiday period.

Last week, Borders also announced it will cut 10% of its corporate staff, following the news that its CEO Ron Marshall is resigning.

-- Reported by Jeanine Poggi in New York.

Follow TheStreet.com on

Twitter

and become a fan on

Facebook.