Borders Group Inc said on Friday that it is taking pre-orders for the Kobo eReader, which will arrive in customers' homes starting on June 17, and plans to launch its eBook store in June.

Borders also said it plans to designate Area-e shops inside its stores to sell the Kobo eReader and other eReading devices starting in August.

The Kobo eReader, priced at $149.99, will join the space that has been dominated by Amazon.com Inc's Kindle. Borders' larger rival Barnes & Noble Inc is already selling its Nook e-reader and Apple Inc recently entered the fray with its more expensive iPad and has already sold more than 1 million of those devices.

The Kobo eReader, which will be preloaded with 100 classic books, will start arriving in customers' homes starting on June 17, Borders said.

The Borders eBook store will have more than 1 million titles, which shoppers will be able to buy through its web site as well as via free apps available for the iPhone, Blackberry, Android, iPad and computers.

(Reporting by Jessica Wohl, editing by Dave Zimmerman)

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