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HOFFMAN ESTATES, IL-Sears Holdings Corp. on Wednesday continued its battle to acquire all of Sears Canada. The giant retailer said on Wednesday that it will seek to appeal a Canadian court ruling that stands in the way of its $900-million takeover bid for Sears Canada, which was first announced in December 2005.

The Sears Holding bid ran into problems almost from the start, with some shareholders of Sears Canada opposing the proposed takeover. In August, the Ontario Securities Commission blocked the takeover, saying that Sears Holdings violated provincial securities law by failing to disclose support agreements with the Bank of Nova Scotia, its investment banking division Scotia Capital Inc. and the Royal Bank of Canada.

Sears Holdings then appealed the securities commission’s decision to the Divisional Court in Canada, but the court ruled against the retailer. The Sears announcement Wednesday says that it is taking its court appeal to the next level.

Sears Holdings also announced that its offer for shares of Sears Canada will be extended until Oct. 31, 2006. It said that the offer may be extended further to preserve Sears Holdings’ rights until its legal appeal is resolved.

Sears Holdings says that during the first half of fiscal 2006 the company increased its majority interest in Sears Canada from 54% to 70% by acquiring 17.8 million common shares of the Canadian company. One of the obstacles to the takeover that remains is opposition from minority shareholders who oppose it.

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