DOW JONES NEWSWIRES
Borders Group Inc. (BGP) said Thursday it won't ask shareholders
to vote on an amendment to allow a reverse stock split at its
upcoming annual meeting and said two directors won't stand for
reelection.
The bookseller had been considering the reverse split in order
to maintain its listing on the New York Stock Exchange. If it can't
get and keep its stock above $1 by June 30, when the end of NYSE
Euronext's (NYX) suspension of rules on continued-listing standards
is set to end, the stock could face delisting.
The company has been hoping to fix its problems by striking a
successful - if very challenging - balance between big cost
reductions and bringing its core consumer back while adding new
ones. Booksellers have been caught in one of the worst
consumer-spending environments in recent years. It trimmed its work
force recently as it looks to drive its turnaround.
Borders said Thursday it may seek approval of a reverse stock
split in the future, but its shares closed Wednesday at $1.45 and
have been trading above $1 since early last week. The stock hasn't
traded premarket.
Directors Edna Medford and Michael Weiss won't stand for
reelection at the May 21 meeting, reducing the board size to
eight.
Five of the remaining directors - Don Campbell, Joel Cohen, Amy
Lane, Brian Light and Larry Pollock - will, but have told the board
they will step down in the coming months as replacements are found.
Borders said it will hire a search firm to help it find candidates
to replace the directors.
The only directors slated to remain are President and Chief
Executive Ron Marshall, Pershing Square Capital Management's
Richard McGuire and The Vitamin Shoppe's Michael Archbold.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com