Borders Cutting eBook Prices

Borders Group Inc. BGP will cut prices on two of its electronic-book readers by about $20 on Wednesday, in an attempt for the struggling bookstore chain to try and gain a foothold for its fledgling e-book initiative in spite of fierce competition. Borders has been faced with declining sales and a flagging share price while trying to decrease debt to levels it hopes will allow it to survive in the poor economy against better-positioned rivals. It will release 2Q earnings Wednesday morning and investors will look to see if it is suffering similar store-traffic declines as Barnes & Noble BKS, which is also dealing with a proxy contest involving investor Ron Burkle's Yucaipa Cos. while it explores options to inject value into its slumping stock. Read the full article at Wall Street Journal.