-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 H9G0vOfyAZReJVx7fxa0q/VeBqIzCxGyjX3c/YzZAEVsbcfPWRwHm/d6rlMxh3uT
 SoZkn9cBgqgNRnfTUCC7+w==

<SEC-DOCUMENT>0001005477-08-002914.txt : 20080414
<SEC-HEADER>0001005477-08-002914.hdr.sgml : 20080414
<ACCEPTANCE-DATETIME>20080414204555
ACCESSION NUMBER:		0001005477-08-002914
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20080409
FILED AS OF DATE:		20080414
DATE AS OF CHANGE:		20080414

ISSUER:		

	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:			1231

	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

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			BGP Holdings Corp.
		CENTRAL INDEX KEY:			0001432266
		STATE OF INCORPORATION:			DE

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13740
		FILM NUMBER:		08755738

	BUSINESS ADDRESS:	
		STREET 1:		888 SEVENTH AVENUE, 29TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019
		BUSINESS PHONE:		(212) 813-3700

	MAIL ADDRESS:	
		STREET 1:		888 SEVENTH AVENUE, 29TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			ACKMAN WILLIAM A
		CENTRAL INDEX KEY:			0001056513
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13740
		FILM NUMBER:		08755739

	BUSINESS ADDRESS:	
		STREET 1:		888 SEVENTH AVENUE
		STREET 2:		29TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019
		BUSINESS PHONE:		212-813-3700

	MAIL ADDRESS:	
		STREET 1:		888 SEVENTH AVENUE
		STREET 2:		29TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Pershing Square GP, LLC
		CENTRAL INDEX KEY:			0001336476
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13740
		FILM NUMBER:		08755740

	BUSINESS ADDRESS:	
		STREET 1:		888 SEVENTH AVENUE
		STREET 2:		29TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019
		BUSINESS PHONE:		212-813-3700

	MAIL ADDRESS:	
		STREET 1:		888 SEVENTH AVENUE
		STREET 2:		29TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			PS Management GP, LLC
		CENTRAL INDEX KEY:			0001336477
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13740
		FILM NUMBER:		08755741

	BUSINESS ADDRESS:	
		STREET 1:		888 SEVENTH AVENUE
		STREET 2:		29TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019
		BUSINESS PHONE:		212-813-3700

	MAIL ADDRESS:	
		STREET 1:		888 SEVENTH AVENUE
		STREET 2:		29TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Pershing Square Capital Management, L.P.
		CENTRAL INDEX KEY:			0001336528
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13740
		FILM NUMBER:		08755742

	BUSINESS ADDRESS:	
		STREET 1:		888 SEVENTH AVENUE
		STREET 2:		29TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019
		BUSINESS PHONE:		212-813-3700

	MAIL ADDRESS:	
		STREET 1:		888 SEVENTH AVENUE
		STREET 2:		29TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar123.xml
<DESCRIPTION>FORM 4
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2008-04-09</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000940510</issuerCik>
        <issuerName>BORDERS GROUP INC</issuerName>
        <issuerTradingSymbol>BGP</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001336528</rptOwnerCik>
            <rptOwnerName>Pershing Square Capital Management, L.P.</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>888 SEVENTH AVENUE, 29TH FLOOR</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10019</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001336477</rptOwnerCik>
            <rptOwnerName>PS Management GP, LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>888 SEVENTH AVENUE, 29TH FLOOR</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10019</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001336476</rptOwnerCik>
            <rptOwnerName>Pershing Square GP, LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>888 SEVENTH AVENUE, 29TH FLOOR</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10019</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001056513</rptOwnerCik>
            <rptOwnerName>ACKMAN WILLIAM A</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>888 SEVENTH AVENUE, 29TH FLOOR</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10019</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001432266</rptOwnerCik>
            <rptOwnerName>BGP Holdings Corp.</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>888 SEVENTH AVENUE, 29TH FLOOR</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10019</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Warrants to purchase shares of common stock</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>7.00</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2008-04-09</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>J</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F1"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>9550000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F1"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2008-04-09</value>
                <footnoteId id="F2"/>
            </exerciseDate>
            <expirationDate>
                <value>2014-10-09</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>9550000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>9550000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See footnotes</value>
                    <footnoteId id="F3"/>
                    <footnoteId id="F4"/>
                    <footnoteId id="F5"/>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">In consideration for certain transactions described in PS Capital's Amendment No. 7 to Schedule 13D filed April 14, 2008, PS I, PSII and BGP (defined below) received warrants to purchase an aggregate of 9,550,000 shares of common stock.</footnote>
        <footnote id="F2">PS Capital has agreed not to exercise any warrants or transfer any warrants or shares of common stock of the Issuer until the earlier of (i) January 1, 2009 and (ii) the public announcement of the Issuer's entry into a definitive agreement with respect to, or the completion of, a change of control or other extraordinary transaction involving the Issuer to which PS Capital is not a party, and not to exercise warrants if that would cause a &quot;change of control&quot; under the Issuer's existing credit facility.</footnote>
        <footnote id="F3">In addition to Pershing Square Capital Management, L.P. (&quot;PS Capital&quot;), this Form 4 is being filed jointly by PS Management GP, LLC (&quot;PS Management&quot;), Pershing Square GP, LLC (&quot;PSGP&quot;), BGP Holdings Corp. (&quot;BGP&quot;) and William A. Ackman, each of whom has the same business address as PS Capital and may be deemed to have a pecuniary interest in securities beneficially owned by the investment funds referred to herein.</footnote>
        <footnote id="F4">Represents 3,782,100 warrants beneficially owned by Pershing Square, L.P. (&quot;PSI&quot;), 52,200 warrants beneficially owned by Pershing Square II, L.P. (&quot;PSII&quot;) and 5,715,700 warrants beneficially owned by BGP. Each of PSI and PSII is an investment fund for which PS Capital acts as investment adviser and may be deemed the beneficial owner of securities beneficially owned by it. Each of PSI and PSII has ownership interests in BGP and may be deemed beneficial owners of securities beneficially owned by it. PS Management is general partner of PS Capital and may be deemed beneficial owner of securities beneficially owned by it. PSGP is general partner of PSI and PSII and may be deemed beneficial owner of securities beneficially owned by them. Mr. Ackman is the managing member of PSGP and PS Management and may be deemed beneficial owner of securities beneficially owned by them.</footnote>
        <footnote id="F5">Each of PS Capital, PS Management, PSGP, BGP and Mr. Ackman disclaims beneficial ownership of the securities reported hereon except to the extent of its or his pecuniary interest therein.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ William A. Ackman, Managing Member, PERSHING SQUARE CAPITAL MANAGEMENT, L.P.</signatureName>
        <signatureDate>2008-04-14</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>/s/ William A. Ackman, Managing Member, PS MANAGEMENT GP, LLC</signatureName>
        <signatureDate>2008-04-14</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>/s/ William A. Ackman, Managing Member, PERSHING SQUARE GP, LLC</signatureName>
        <signatureDate>2008-04-14</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>/s/ William A. Ackman</signatureName>
        <signatureDate>2008-04-14</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>/s/ William A. Ackman, Authorized Representative, BGP HOLDINGS CORP.</signatureName>
        <signatureDate>2008-04-14</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----