Sears Places $1.9 Billion Lands’ End Order
Sears, Roebuck has agreed to buy Lands’ End for $1.9 billion, or $62 per share in cash, reports CBS.MarketWatch.com. The figure represents a 22 percent premium to Friday’s closing price for Lands’ End stock, and 12 percent above its 52-week high, details the late-breaking news. The acquisition of the mail order retailer is expected to close in June.
Moderator Comment: What will this deal mean for Sears
and Lands’ End?
This deal can only help the Sears’ retail brand image.
Not sure it is going to do much for Lands’ End’s marketing
efforts, however. Stronger negotiating position with vendors and organizational
efficiencies will be cited as the reasons this a good deal for Lands’ End. Shareholders
looking to sell probably aren’t too unhappy with the share price premium being
paid by Sears. [George
Anderson – Moderator]