-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EYwfocVv+cnIAS/HOO3LNqYsX/hNraumcCRNxu+AT8q8P2acvcCU9xJfyqsJgDX8 Y0cmOCriWBIF6AX2WKSqbw== 0000899140-07-001357.txt : 20070803 0000899140-07-001357.hdr.sgml : 20070803 20070803165634 ACCESSION NUMBER: 0000899140-07-001357 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20070803 DATE AS OF CHANGE: 20070803 GROUP MEMBERS: KENNETH H. SHUBIN STEIN, MD, CFA SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: BORDERS GROUP INC CENTRAL INDEX KEY: 0000940510 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-MISCELLANEOUS SHOPPING GOODS STORES [5940] IRS NUMBER: 383294588 STATE OF INCORPORATION: MI FISCAL YEAR END: 0525 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-52269 FILM NUMBER: 071024664 BUSINESS ADDRESS: STREET 1: 100 PHOENIX DRIVE CITY: ANN ARBOR STATE: MI ZIP: 48108 BUSINESS PHONE: (734) 477-1100 MAIL ADDRESS: STREET 1: 100 PHOENIX DRIVE CITY: ANN ARBOR STATE: MI ZIP: 48108 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: Spencer Capital Management, LLC CENTRAL INDEX KEY: 0001311910 IRS NUMBER: 820581852 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 200 W. 57TH STREET, SUITE 602 CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 212-586-4198 MAIL ADDRESS: STREET 1: 200 W. 57TH STREET, SUITE 602 CITY: NEW YORK STATE: NY ZIP: 10019 SC 13D/A 1 b3867811b.txt SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13D (Amendment No. 1) Under the Securities Exchange Act of 1934* Borders Group, Inc. --------------------------------------------------------------------- (Name of Issuer) Common Stock --------------------------------------------------------------------- (Title of Class of Securities) 099709107 --------------------------------------------------------------------- (CUSIP Number) Kenneth H. Shubin Stein, MD, CFA Spencer Capital Management, LLC 1995 Broadway, Suite 1801 New York, New York 10023 --------------------------------------------------------------------- Telephone: (212) 586-4190 (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) Copies to: Michael A. Schwartz, Esq. Willkie Farr & Gallagher LLP 787 Seventh Avenue New York, NY 10019-6099 (212) 728-8000 August 1, 2007 --------------------------------------------------------------------- (Date of Event which Requires Filing of this Schedule) If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box: [ ] NOTE: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 240.13d-7 for other parties to whom copies are to be sent. * The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). SCHEDULE 13D - --------------------------------- ----------------- CUSIP No. 099709107 Page 2 of 8 Pages - --------------------------------- ----------------- - ----------- -------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Kenneth H. Shubin Stein, MD, CFA - ----------- -------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - ----------- -------------------------------------------------------------------- 3 SEC USE ONLY - ----------- -------------------------------------------------------------------- 4 SOURCE OF FUNDS* AF - ----------- -------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - ----------- -------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION United States - --------------------- --------- ------------------------------------------------ 7 SOLE VOTING POWER 0 --------- ------------------------------------------------ NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY 4,628,102 OWNED BY --------- ------------------------------------------------ EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON WITH 0 --------- ------------------------------------------------ 10 SHARED DISPOSITIVE POWER 4,628,102 - ----------- -------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 4,628,102 - ----------- -------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - ----------- -------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 7.9% - ----------- -------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN - ----------- -------------------------------------------------------------------- SCHEDULE 13D - --------------------------------- ----------------- CUSIP No. 099709107 Page 3 of 8 Pages - --------------------------------- ----------------- - ----------- -------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Spencer Capital Management, LLC - ----------- -------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - ----------- -------------------------------------------------------------------- 3 SEC USE ONLY - ----------- -------------------------------------------------------------------- 4 SOURCE OF FUNDS* AF - ----------- -------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - ----------- -------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - --------------------- --------- ------------------------------------------------ 7 SOLE VOTING POWER 0 --------- ------------------------------------------------ NUMBER OF 8 SHARED VOTING POWER SHARES BENEFICIALLY 4,628,102 OWNED BY --------- ------------------------------------------------ EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON WITH 0 --------- ------------------------------------------------ 10 SHARED DISPOSITIVE POWER 4,628,102 - ----------- -------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 4,628,102 - ----------- -------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - ----------- -------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 7.9% - ----------- -------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO - ----------- -------------------------------------------------------------------- This Amendment No. 1 amends the Schedule 13D filed on July 9, 2007 (as amended by this Amendment No. 1, the "Schedule 13D") and is being filed on behalf of Kenneth H. Shubin Stein, MD, CFA, an individual ("Dr. Shubin Stein") and Spencer Capital Management, LLC, a Delaware limited liability company ("SCM", and together with Dr. Shubin Stein, the "Filers"). The Schedule 13D relates to the common stock (the "Common Stock") of Borders Group, Inc., a Michigan corporation (the "Company"). SCM is an investment management firm and is the investment adviser to certain investment funds and managed accounts (such funds and accounts, collectively, the "Funds"). Dr. Shubin Stein is the controlling person of, and a portfolio manager for, several investment funds and managed accounts, including the Funds. SCM and Dr. Shubin Stein may be deemed to have beneficial ownership over the shares of, and options to purchase shares of, Common Stock directly beneficially owned by the Funds by virtue of the authority granted to them by the Funds to vote and to dispose of the securities held by the Funds, including the Common Stock. Item 3. Source and Amount of Funds or Other Consideration Item 3 of the Schedule 13D is hereby amended and restated as follows: The Funds have expended an aggregate of approximately $47,646,840 in order to purchase the 2,452,902 shares of Common Stock held by them and approximately $13,139,833 in order to acquire the options to purchase 2,175,200 shares of Common Stock held by them. The Funds purchased the Common Stock with their working capital, which may, at any given time, include margin loans made by brokerage firms in the ordinary course of business. The Filers effect purchases of securities primarily through margin accounts maintained for them with Goldman, Sachs & Co. (the "Prime Broker"), which may extend margin credit to the Filers as and when required to open or carry positions in the margin accounts, subject to applicable federal margin regulations, stock exchange rules and the Prime Broker's credit policies. In such instances, the positions held in the margin accounts are pledged as collateral security for the repayment of debit balances in the accounts. Item 5. Interest in Securities of the Issuer. Item 5 of the Schedule 13D is hereby amended and restated as follows: (a) As of the date hereof Dr. Shubin Stein and SCM beneficially own 4,628,102 shares of Common Stock, consisting of 2,452,902 shares of Common Stock and 2,175,200 shares of Common Stock acquirable upon exercise of options held by the Funds, together representing 7.9% of the outstanding shares of Common Stock. The percentages set forth above and in the rest of this Schedule 13D were calculated based on a total of 58,808,830 shares of Common Stock outstanding as of June 7, 2007, as reported in the Company's Quarterly Report on Form 10-Q for the quarterly period ended May 5, 2007. (b) Dr. Shubin Stein and SCM share voting and dispositive power over the 4,628,102 shares of Common Stock directly beneficially owned by the Funds. (c) Transactions in the Common Stock and in options to purchase Common Stock effected by the Funds (all of which were made at the direction of Dr. Shubin Stein and SCM) 4 since the most recent filing on Schedule 13D are described on Schedules A and B hereto. Schedules A and B are hereby incorporated by reference to such schedules. All of the transactions set forth on Schedules A and B were effected in open market transactions. (d) Not applicable. (e) Not applicable. Item 6. Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer. Item 6 of the Schedule 13D is hereby amended by deleting the second paragraph thereof and replacing it with the following: The Funds have acquired, in open market transactions, standardized call options pursuant to which the Funds may purchase an aggregate of 2,175,200 shares of Common Stock of the Company. Pursuant to the exercise of the call options, such shares of Common Stock can be acquired for a price of $15.00 per share. The call options held by the Funds expire on January 17, 2009. For further information relating to the options held by the Funds to purchase Common Stock, see Item 5 and Schedule B hereto. [Signature page follows] 5 SIGNATURES After reasonable inquiry and to the best of our knowledge and belief, the undersigned certify that the information set forth in this statement is true, complete and correct. Dated: August 3, 2007 SPENCER CAPITAL MANAGEMENT, LLC By: /s/ Kenneth H. Shubin Stein, MD, CFA ------------------------------------------ Name: Kenneth H. Shubin Stein, MD, CFA Title: Managing Member By: /s/ Kenneth H. Shubin Stein, MD, CFA ------------------------------------------ Kenneth H. Shubin Stein, MD, CFA [SIGNATURE PAGE TO AMENDMENT NO. 1 TO SCHEDULE 13D WITH RESPECT TO BORDERS GROUP, INC.] SCHEDULE A Schedule of Transactions in Common Stock by the Funds ----------------------------------------------------- The following transactions were effected by the Funds at the direction of Dr. Shubin Stein and SCM: Type of Date Number of Price per Share in Transaction Shares $US - --------------------- ----------------- ------------------ --------------------- Buy 08/01/2007 94,001 16.33 - --------------------- ----------------- ------------------ --------------------- SCHEDULE B Schedule of Transactions in Options to Purchase Common Stock by the Funds ------------------------------------------------------------------------- The following transactions were effected by the Funds at the direction of Dr. Shubin Stein and SCM: Date Transaction Option Price per Shares Strike Price per Share ($) Acquirable Upon Share ($) Exercise - ------------ ------------- ------------------ ----------------- ---------------- 08/01/2007 Buy 4.646 526,000 $ 15.00 - ------------ ------------- ------------------ ----------------- ---------------- -----END PRIVACY-ENHANCED MESSAGE-----