UPDATE 1-Borders names Pershing Sq. exec to board

(Adds details, background, changes dateline previous NEW YORK)

LOS ANGELES, Jan 17 (Reuters) - Borders Group Inc (BGP.N) on Thursday named Richard "Mick" McGuire, a partner in activist hedge fund Pershing Square Capital Management LP, to its board of directors.

Pershing Square holds about 18 percent of Borders, a retailer of books, music and other products.

Pershing Square, which was founded by investor William Ackman, has been active in pressing for strategic changes in companies including McDonald's Corp (MCD.N) and others.

McGuire is one of five people responsible for managing about $6 billion for Pershing, Borders said in a statement.

Borders, the second largest U.S. bookseller behind Barnes & Noble Inc (BKS.N), has said it would consider selling most of its overseas stores, close nearly half of its Waldenbooks stores in the United States and start selling books through its Web site as it looks to close the gap with the industry leader.

Pershing took a stake in Borders in 2006. In November of that year, Ackman said at a conference that the stock could be worth more than $36 a share within 18 months.

Shares of the Ann Arbor, Michigan-based bookseller closed at $9.79 on Thursday on the New York Stock Exchange. (Reporting by Dane Hamilton and Nichola Groom, editing by Richard Chang and Carol Bishopric)