A special shareholders meeting has been called for September 29 that will further cement Bennett LeBow’s leadership of Borders. At that meeting, shareholders will be asked to approve a proposal to give LeBow’s company, LeBow Gamma Limited, the right to acquire 35.1 million shares of the retailer for $2.25 per share. In mid-day trading Thursday, Borders’ stock was selling at $1.35 per share. LeBow became Borders’ largest shareholder May 21 when his firm acquired 11.1 million shares in a $25 million investment.
LeBow is chairman and CEO of the retailer and a second proposal will require Borders to receive the approval of LeBow Gamma before “appointing, terminating or transferring the Chief Executive Officer or Chief Financial Officer of the company, or any executive officer, or materially changing the terms and conditions of their employment, subject to certain exceptions,” according to a Borders release.
