Bill Ackman's Pershing Square Capital Management disclosed an increased 17.1% stake in bookseller Borders Group Inc., according to a Schedule 13D filing with the SEC. Last month, the activist investor indicated in another SEC filing interest in electing a slate of directors, which may indicate his interest in shaking up the executive suites and tinkering with the restructuring plan.

Borders Group is amid a turnaround launched in March, tapping Merrill Lynch & Co. to advise it. In September the bookseller agreed to sell its British and Irish subsidiaries to London private equity firm Risk Capital Partners Ltd. for up to £30 million ($60.6 million). Additionally, the turnaround plan calls for the disposal of Australian and New Zealand stores and the launch of its own Web site to replace its existing agreement with Amazon.com.

However, Ackman's investment could be as simple as an opportunistic one in a retailer plying alternatives to toys. After all, Borders' shares are off their 52-week high of $24.15, trading at half that level. Meanwhile, last week management said that its fourth-quarter earnings, excluding restructuring charges, will exceed last year's earnings from continuing operations of around $1.48 per share thanks in large part to both the fear of lead in toys and a strong best-seller lineup.

Additionally, in an Oct. 9 SEC filing, Pershing Square said it did not believe its activities would effect a change of control at Borders. Clearly earlier steps indicate Ackman is interested in the turnaround process, but the recent stake increase may simply be a bet that Borders will receive a boost from the ongoing Chinese toy recalls. — Matthew Wurtzel

See SEC filing
See TheDeal.com: Pershing goes activist with Borders
See profile of British deal from AuctionBlock.com (subscription required)
See profile of Australian auction from AuctionBlock.com (subscription required)