Borders to be dropped from the NY Stock Exchange

It's not going to happen just yet, though.

Borders got word today that they will be dropped from the NYSE soon. It seems that there is a rule that penny stocks can't be traded on the NYSE, and Borders' stock price has been under a buck since the beginning of January. They have 6 months to get the price up before the stock is removed, but given that I think they'll be broken up and sold off by then I really don't think it matters.

From the press release:

Borders Group, Inc. (NYSE: BGP) today reported that on Feb. 3, 2011, it was notified by NYSE Regulation, Inc. that it was not in compliance with the continued listing standard of the New York Stock Exchange, Inc. (the "NYSE") requiring a minimum average closing price of $1.00 per share over a consecutive 30 trading day period. Subject to providing required notice to the NYSE, the company is entitled to a six-month period from the date of the notification to cure this deficiency. During this period, Borders' shares would continue to be listed and traded on the NYSE, subject to its compliance with other NYSE continued listing standards.

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