The performance of Borders (NYSE: BGP) has given investors little to smile about. From its 52-week high of $24.15 reached in May, the stock has descended all the way down to $6.35. Back in March the company put itself up for sale with one obvious interested party being Barnes & Noble (NYSE: BKS). I can't see any reason for the company to double-down on bricks-and-mortar retailing.

Now, The Wall Street Journal reports (subscription required), citing an unnamed source, that Barnes & Noble has "assembled a team of executives and advisers to study the possibility" of acquiring Borders.

The Journal adds that "When Borders made its announcement, Barnes & Noble Chairman Leonard Riggio said he would feel compelled to take a look at Borders. But the formation of the team suggests Barnes & Noble is a serious contender."

I'm not so sure about that. Given Borders' status as the number two in the industry and the beating the stock has taken, Barnes & Noble is compelled to look at the company now that it's looking to sell. I question whether the assembly of a team to examine the company means that the company is that serious about an acquisition. It's just a necessary step in exploring an acquisition.

Add in the possible antitrust hurdles of combining the top two bricks-and-mortar booksellers and you have a deal that would appear to be in the very early stages of coming together. It seems likely that the stock will pop on the report, but I wouldn't buy into the hype just yet. The same factors that make Borders unattractive as a stand-alone company combined with its huge debt load may make finding a buyer tough in this market.