Borders Group could be forced to close 51 of its most profitable locations because landlords of those stores haven’t agreed to give the bookseller more time to decide whether it wants to keep the leases. The Ann Arbor, Mich.,-based bookseller needs all its landlords to sign off on a request that giv
es it more time to decide to accept or reject those leases during its Chapter 11 bankruptcy protection process that began Feb. 16. Without the affected landlords agreeing to give Borders more time, it could jeopardize its debtor-in-possession financing arrangements that are critical to move through the bankruptcy process.
Pandora raises initial stock price
Pandora raised the price range of its initial public offering Friday by at least a third and boosted the number of shares to be sold by as many as a million, demonstrating again a seemingly insatiable demand from investors for a stake in a new slate of Internet companies. The popular online radio service may raise as much as $176.3 million with the new offer. Proceeds for Pandora Media Inc. could reach about $72 million if the shares price at $12. Selling stockholders would get up to $104.2 million. Pandora raised the price range for the shares to between $10 and $12, up from the initial $7 and $9 it was seeking. Pandora and the selling stockholders also are now offering up to 14.7 million shares, up from 13.7 million.
Supply problem halts Saab plant
Struggling Swedish car maker Saab Automobile AB says its production plant in Trollhattan will be closed all of next week while it negotiates with suppliers to get a stable material flow to the factory. The Spyker-owned auto group earlier this week said it expects some startup hiccups after recovering from a longer standstill while looking to secure funding. Saab spokeswoman Gunilla Gustavs said Friday the plant will be closed next week, but would not give a definite date when production is expected to start again, saying the flow from suppliers needs to stabilize first. Last month, Chinese group Pang Da agreed to buy a 24 percent stake in Spyker for $95 million. It has also ordered 2,000 Saabs.
P&G settles diaper rash complaint
Consumer products maker Procter & Gamble says it has agreed to settle a lawsuit by parents who claimed a new version of Pampers diapers caused skin rashes and other problems for their babies. P&G will pay the parents’ attorney fees, estimated at $2.7 million, and give each child of the 59 plaintiffs $1,000 under terms subject to final approval in U.S. District Court in Cincinnati. The company also will spend $400,000 to create a pediatric resident training program and provide skin rash education, including on the Pampers website. P&G said it isn’t paying the plaintiffs damages, and a federal probe found no specific link between the new diapers and babies’ skin problems.
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