RETAILING

Kmart Sells 87% of Borders Group Inc.: The nation’s No. 2 retailer said it sold the stake in its music and book retailing unit for $520 million. The 35.9-million share offering was priced at $14.50 a share. Borders is a leading U.S. operator of mall-based bookstores. The sale is part of Kmart Corp.’s strategy to shed specialty retailing operations and focus on its core discount chain. Borders had sales of about $1.51 billion for the fiscal year ended Jan. 22. It is the holding company for Borders Inc., Waldenbooks Co. and Planet Music Inc. High demand for Borders stock led Kmart to increase the number of shares it was willing to sell.