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Borders Extends Paperchase Transaction

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Ann Arbor, Mich. Borders Group Inc. said Friday that a financing deal related to the potential sale of its stationery business to an activist hedge fund has received a further extension.

The expiration date of Borders' option to "put" Paperchase Products Ltd. to Pershing Square Capital Management LP for $65 million was originally scheduled for Jan. 15. A “put option” is the opportunity to sell a certain number of shares at a certain price and date in exchange for an upfront fee.

The option, which was first extended to Feb. 16 in December, is now scheduled to expire on April 15.

Borders is paying Pershing Square $750,000 to extend the option and reimburse expenses.

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