NEW YORK ( TheStreet) -- Borders ( BGP) is surging as it begins taking orders for its new e-reader.

Borders will also launch an e-book store and software in June. The Kebo e-reader is cheaper than other similar devices like Amazon's ( AMZN) Kindle and Barnes & Noble's ( BKS) Nook, retailing at $149.99. The other two e-readers both sell for $259.

Borders will begin selling the device in stores in August. Pre-ordered Kebos are expected to arrive on June 17.

Shares of Borders are gaining 7.3% to $2.22 in afternoon trading.

-- Reported by Jeanine Poggi in New York.

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