Sears Holding Trumps Previous Offer for Restoration Hardware

Sears Holding Corp is prepared to offer $6.75/share in cash for Restoration Hardware Inc., according to a regulatory filing on Monday. The bid topped the management-led buyout proposal of $6.70/share or $267 million. The filing also showed that Sears was denied confidential information it requested to create a takeover proposal for Restoration Hardware by a special committee made up of Restoration board members. The $6.75 bid was solely based on "public information currently available," the letter specifically stated. The previous $6.70 bid had already been accepted by Restoration Hardware, but as part of the deal, members of the board agreed to solicit other bids for a 35-day span, ending December 13th. Sears had bid for the Restoration in October, and had been expected to make another play for Restoration after revealing it already had a 13.7% stake in the company. Shares of Sears Holding fell 2.8% to $109.45, while Restoration Hardware stock fell 0.7% to $7.01 in midday trading Monday.

Sources: Wall Street Journal, Reuters
Commentary: Sears Bid For Restoration Hardware: WSJ's Weak Financial Analysis • Sears Holdings: It's All About Brands, Not Stores
Stocks to watch: SHLD, RSTO

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