 Borders Books was rumored to have approached Barnes & Noble in hopes of a buyout.The chain was in debt, having increased its financial instability by borrowing US$42.5 million in March from Pershing Square Capital Management, the company's major stockholder, to keep the company running through the remainder of the fiscal year.The loan was said to have a very high interest rate of 12.5%, which meant that the chain would have to post a significant profit to stay afloat in the future.