Hoffman Estates, IL, April 4, 2006--Sears Holdings Corp., the nation's third-largest retailer, said Monday it is increasing its offer for Sears Canada and giving shareholders more time to accept it.
Sears, which holds a 63.2 percent stake in Sears Canada, said it has increased its offer to 18 Canadian dollars ($15.32) per share. The company previously offered 16.86 Canadian dollars per share.
Sears also said it has reached a deal with real estate investment trust Vornado Realty LP, a shareholder of Sears Canada, in which Vornado has agreed to sell its 7.5 million shares of Sears Canada to the company by the end of this week.
If the Vornado deal goes through, Sears will increase its stake in Sears Canada to 75.4 million shares, or more than 70 percent. Sears said it is still discussing its new offer with other shareholders.
The new offer expires April 18.
Sears Holdings, which owns Kmart and Sears, Roebuck and Co. stores, says it wants to acquire the Canadian unit for the financial and operating benefits of a 100 percent stake.
Alan Lacy, vice chairman of Sears Holdings, expressed confidence that the deal will now go through as a result of the increased offer.
