borders group

After failing to find a buyer, Borders Group Inc. has been forced to issue warrants to Pershing Square Capital Management, giving its biggest shareholder even more control over the Ann Arbor, Mich.-based bookseller.

Borders Group Inc. shares soared more than 25 percent Wednesday after it posted better-than-expected earnings for the second quarter.

But analysts remained leery, saying that tough competition and a weak economy continue to pose big challenges for the bookseller.

Bookseller Borders Group Inc. has posted a smaller loss for its fiscal second quarter compared to a year earlier, but saw store sales slow.

StreetInsider Trading Radar: Intraday or Not Specified: Economics: 10 AM ET

• Consumer Confidence for May - Street expects 61.0, compared to 62.3
• New Home Sales for April - Street expects 520K, compared to 526K

After Market Closes: Earnings: Borders Group (NYSE: BGP) - consensus loss of $0.47, revs $801.11M Jamba (Nasdaq: JMBA) - consensus loss of $0.12, revs $101.28M Subscribe to EasyStockAlerts and get real-time e-mail alerts when news hits your stocks!

StreetInsider.com Trading Radar: MBA Mortgage Applications are expected at 7AM ET Discover Financial (NYSE: DFS) is expected to report results before the open Wednesday with analysts looking for EPS of $0.40 and revenues of $983.75 million.

General Mills (NYSE: GIS) is expected to report results before the open Wednesday with analysts looking for EPS of $0.79 and revenues of $3.24 billion.

Morgan Stanley (NYSE: MS) is expected to report results before the open Wednesday with analysts looking for EPS of $1.03 and revenues of $7.19 billion.