Borders Can't Find Buyer, Issues Warrants

fter failing to find a buyer, Borders Group Inc. on Wednesday was forced to issue warrants to Pershing Square Capital Management LP, potentially giving its largest shareholder even more reason to push the bookseller toward a sale.

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Borders said in March it was exploring a possible sale as part of a larger financial restructuring plan.

According to filings with the Securities and Exchange Commission, if the company didn't sign an agreement by Wednesday or abandoned its plans, it would have to issue more warrants to Pershing. That arrangement was part of an April deal with Pershing to line up $42.5 million in financing.

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