Borders Group’s largest shareholder, Bennett LeBow, cemented his control over the retailer late Thursday afternoon when shareholders approved two proposals at a special shareholders meeting. The approval came a day after the company delayed the meeting for 24 hours. Shareholders approved giving LeBow’s firm, LeBow Gamma Limited Partners, a warrant to acquire 35.1 million shares of the company’s stock; LeBow already owns 11.1 million Borders shares which he acquired in May for $25 million. If LeBow acquires all 35 million shares, which carry a $2.25 price, he would control about 35% of the company.
In addition, shareholders approved a proposal to require the company to obtain the consent of LeBow Gamma Limited Partnership prior to it appointing, terminating or transferring the CEO or Chief Financial Officer of the company, or any executive officer, or materially changing the terms and conditions of their employment.
