Spencer Management Capital, which has a 7.9% stake in Borders, has asked that at least one seat on the retailer’s board of directors be held by a representative from one of the company’s “significant shareholders.” According to a filing with the Securities and Exchange Commission yesterday, the hedge fund adviser proposed that Glenn Tongue, managing partner with T2 Partners, which has about 360,000 Borders shares, be added to the board.
The filing notes that on September 25 several large shareholders had a conversation with Borders CEO George Jones about adding Tongue to the board. A Borders spokesperson said the company is considering the request. According to the filing, the shareholder group may submit plans or proposals to the company, although it said the group had no specific plans at the present time.
Borders’s stock price has had a rough month, falling from $15 on August 31 to $12.28 on September 26 before rallying a bit yesterday to close at $13.10.