Thank you for sharing!

Your article was successfully shared with the contacts you provided.

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.