Barnes & Noble Inc., the nation's largest bookstore chain, isn't expected to make a bid for No. 2 Borders Group Inc., according to those familiar with the situation.Marketwatch.com chimed in:
The decision will disappoint investors who have acquired Borders stock in recent months in hopes that Barnes & Noble would move in and buy its most significant bricks-and-mortar rival. Borders put itself up for sale in March after disclosing potential liquidity problems.
Barnes & Noble could still change its mind and make an offer, but Borders is hoping to complete the auction by the end of September, the Journal's latest report said. However, if Barnes & Noble does end up bidding for Borders, it's not clear whether antitrust authorities would clear the deal.
Both Barnes & Noble and Borders have faced increased competition from online retailers like Amazon.com while overall book sales haven't shown much growth, analysts have said. A combination between the two book giants could yield cost savings and bolster sales and profit, though the close physical proximity of some of the competing stores may pose a challenge.