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Exclusive: Borders Bankruptcy 'Low Probability,' Says Ackman

Tuesday, 2 Feb 2010 | 6:23 PM ET

In our exclusive interview, billionaire investor Bill Ackman told Fast Money a Borders bankruptcy was "a low probability event" and his comments moved shares substantially in the aftermarket!

As you may know Bill Ackman is the founder and CEO of Pershing Square Capital Management. He’s celebrated for taking large positions in a relatively small number of companies and then advocating for strategic changes – to maximize value.

Ackman on the Markets
Pershing Square Capital's Bill Ackman sheds light on the markets and upcoming deals.

On Tuesday’s Fast Money he spoke with the gang about his position in Borders and his comments moved shares by 36% in extended trade.

”I think the company has stabilized. The stock trades as if it’s going bankrupt but we don’t see it as a likely bankruptcy.”

Within minutes his comments crossed on the wires:

Investor William Ackman on Tuesday called a potential bankruptcy for book seller Borders Group Inc. (BGP) a "low-probability event." "It may become part of an industry consolidation at some point, or it may survive as a standalone company,"
-- Dow Jones

Minutes after that the stock popped in the aftermarket.

So, have you missed the trade? Decide for yourself.

He also said, “I think Borders is much more attractive risk/ reward than Barnes & Noble. Ultimately I think the industry may consolidate and the two companies may become one.”

And that’s not the only trade you can make from our conversation.

Recently Ackman disclosed a sizable stake in Kraft . Considering the acquisition of Cadbury we wondered at what point he thought Kraft shares would be fairly valued.

“It will probably take a couple years,” Ackman tells the desk. "We like the merger. We think they’re paying a fair price for Cadbury. We think there’s a lot of cost synergies and revenue synergies and we think the combined company will be a higher quality company.”

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*For a donation of $1000 you can be among a small group – 200 people – who have the opportunity to gain investment insights directly from Bill Ackman during the Harbor Investment Conference.

But you have to act fast. The event is scheduled for Wednesday February 3rd beginning at 12noon. (As of Tuesday night tickets were still available.)

Other esteemed speakers include Whitney Tilson of T2 Partners as well as our own Chairwoman, Karen Finerman.

All proceeds benefit the "Boys And Girls Harbor Charitable Organization.

> For more information visit www.nycharities.org or click here


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Trader disclosure: On February 2nd, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (BTU), (MSFT), (NUE); Najarian Owns (AAPL) Call Spread; Najarian Owns (AA) Calls; Najarian Owns (AKAM) Call Spread; Najarian Owns (CEPH) Call Spread; Najarian Owns (INTC) Calls; Najarian Owns (MET) Call Spread; Najarian Owns (MS), Is Short (MS) Calls; Najarian Owns (PFE); Najarian Owns (SPF) Calls; Najarian Owns (XLF) Calls; Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (UNG), (USO), (BKS); Finerman's Firm Is Short SPX Puts; Finerman Owns (AAPL); Finerman's Firm Owns (BAC) Preferred, (BAC) Leaps; Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm And Finerman Own (CVS), (FLS), (GOOG); Finerman's Firm Owns (KFT)

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Other Relevant Disclosures:
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