Two questions,
1: If Borders were to merge with B/N would that create a guaranteed
increase in stock price?  If so what kind of increase, 5% or 25%?

2: What do you think the chances of that happening in the next six
months are?

Ha.. this is kinda humerous.. I am coming  to this post from the Books
a Million Thread (BAMM).  Just checking out the competitors.  I hear
the same speculation "what if BAMM merges with BN or what if Borders
acquires BAMM"...

Anyways,  I think the chances are pretty slim for any of these book
stores to merge or buy out any other, but thats just my guess,
although i wouldnt mind seeing BAMM getting bought out.

as for increases.. no clue...

I think the chances of a merger are pretty slim considering that these
bookstores are the only two national brick and mortar chains.  There
would likely be opposition to a merger or buyout because of concerns
that the company would then control too much of the retail bookstore
business, creating antitrust issues.  (Look at the problems that the
Whole Foods/Wild Oats proposed merger created).  If it were to happen,
the B&N name would remain, Borders as such would probably disappear,
and the management of the company would be headed by B&N (which would
be the best possible solution as the Borders management team just
continues to prove it doesn't know much about operating bookstores
anymore).  The most likely scenario anymore would be a private equity
firm taking Borders private, axing the current management, and forming
a management team that would be most likely to return Borders to a
profitable growing business.