Borders Sees a Longer Haul

Borders has announced that "management is no longer contemplating a transaction" to sell the entire company." The company remains "in discussions with Pershing Square regarding an alternative financing transaction," and could sell the Paperchase chain to Pershing Square for $65 million. The possible sale is apparently a negotiating point. Borders fell short of diminished expectations for the fiscal third quarter. Suffering from the economic downturn, Borders does not expect to achieve its goal of Borders.com breaking even this year "as previously stated."