In the filing the firm said:
In late June 2007, representatives of the Filers had conversations with the chief financial officer of the Company concerning the business of the Company. The Filers intend to seek to engage in further discussions with members of the board of directors or management of the Company and to discuss with them the business of the Company. Based on discussions with these or any other representatives of the Company, the Filers may formulate plans or proposals with respect to the Company.
Also remember, Williman Ackman's Pershing Square Capital owns an 11.7% stake in Borders. Pershing Square also holds a big stake in Borders' rival Barnes and Noble (NYSE: BKS). There has been talk in the past he could push the two to merge.
It is not great news for management, but possibly good for investors, when two activist investors are in your top four holders.
BGP 1-yr chart