April 16, 2009 / 12:30 PM / 9 years ago

UPDATE 1-Borders to lose directors, scrap reverse split

* Says not seeking approval for reverse stock split

* Says 2 directors not standing for re-election

* Says 5 more directors plan to leave in coming months

NEW YORK, April 16 (Reuters) - Borders Group Inc BGP.N said on Thursday that it will no longer seek approval for a reverse stock split as previously planned, and that it will lose several members of its board of directors.

The book seller said it was planning to seek shareholder approval for a reverse stock split at its annual shareholder meeting in May, in order to increase its stock price to meet criteria for continued listing on the New York Stock Exchange.

But the split is no longer necessary at this time, Borders said, since its shares are trading above the $1 mark, and the exchange has temporarily suspended the price requirement.

Borders also said two of its directors, Edna Medford and Michael Weiss, will not stand for re-election this year, thereby reducing the board’s size to eight people.

Five of the eight remaining directors plan to stand for re-election at the May meeting, but plan to step down from the board in coming months as replacements are found, the company said.

Borders’ shares closed at $1.45 on Wednesday, down 77 percent over the past year. In January, the company shook up its management ranks, ousting its chief executive and chief financial officer, and bringing in former private equity executive Ron Marshall, who had experience turning around ailing companies. (Reporting by Martinne Geller, editing by Dave Zimmerman)

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