Oh, yes, there was another big story yesterday that was quickly eclipsed by the launch of Google eBooks: a possible $960 million Borders bid for Barnes & Noble that was acknowledged in a filing with the Securities and Exchange Commission.
Although intriguing, the bid that would be financed by equity fund head Bill Ackman seems as thin as a potboiler. The major problem is that Borders is in much worse shape in a variety of ways than Barnes & Noble. Its share price has hovered over just $1 a share for some time. It has deep debt, has laid off many employees, has suffered from a revolving door in the executive suite and 
is late to the digital book game. The Wall Street Journal pointed out, too, that "B&N has more opportunity near term to reduce overcapacity by closing stores: 60% of the leases on its more than 700 stores (excluding college outlets) are up by 2014. But nearly three-quarters of Borders' 508 U.S. store leases run to 2017 or later."
Also while the $16-a-share offer was 20% above B&N's closing price last Friday, B&N rallied yesterday and closed at $15 a share, narrowing the premium. As the Journal noted, as many as 10 private equity and other firms are participating in B&N's strategic review process, and bids are expected to start above $20 a share.
In Daily Finance, Sarah Weinman shed some light on a quiet player in the drama, writing, "Even though [Bill] Ackman is in the news as the leading figure in the buyout, the tactics have Borders chairman and CEO Bennett LeBow written all over them. LeBow muscled his way into Borders' top position by acquiring a considerable amount of stock and warrants that, when they came due, gave him a 35% stake in the company.
"Past precedent shows that LeBow's modus operandi with companies is to buy his way into one, use it in an attempt to buy a bigger company--and sink both businesses in the process."
She added that the Borders offer might be incentive enough for B&N founder and chairman Len Riggio to make his own bid for the company.