Thirteen months ago, I ran a post called "Would Borders Merge with B&N?" And the idea continued to fuel analyst's imaginations throughout 2007, until even skeptics were persuaded. And now, after Borders took a $42.5 million bailout from Pershing Square Capital Management, the speculation gains even more traction; Pershing Square is, after all, already a big investor in Barnes & Noble. So when the question is put directly to Leonard Riggio, the B&N chariman (left) tells the Wall Street Journal:

"I think it would be the height of irresponsibility for us not to look at something presented to us. If they want us to take a look, we would be pleased to do so. We also feel we would be obliged to do so."

B&N chief operating officer Mitchell S. Klipper is quoted in the NY Times expressing a similar sentiment: If Borders came asking to be bought, "we'd certainly take a good look at the company and put it under review."