• The Detroit News, Friday, August 31, 2007 11:30 AM

Some analysts say that a federal antitrust ruling involving the combination of Whole Foods Market and Wild Oats Markets last week enhance the chances of a merger between Borders and Barnes & Noble.

The merger closely mirrors a potential deal between Borders and B&N and "could be perceived as a potential new precedent and open up meaningful discussions," writes David Schick, an analyst at Stifel Nicolaus & Co., in a report to investors.

The talk of a potential merger of Borders and Barnes & Noble comes as both firms struggle against online rivals, such as Amazon.com, and big-box retailers, such as Target. Online stores often offer lower prices, and big-box stores supply a much wider selection than in the past. Spokesmen for both booksellers decline to comment on any hypothetical deal between the two companies.

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