Restoration Hardware responds to Sears bid

Share this content:
Sears retools into five units
Sears retools into five units

In response to Sears' bid, Restoration Hardware Inc. said yesterday that it would provide certain financial data if Sears will sign the same confidentiality/standstill agreement as other interested parties.

On Monday, Sears revealed that it had offered $6.75 per share in cash last week to acquire Restoration Hardware. Sears also asked for confidential information to submit a binding offer, a request that Sears said Restoration Hardware denied.

In a statement released yesterday by Restoration Hardware, the upscale, multichannel home furnishings retailer said that Sears' request failed to meet certain criteria.

“While Sears has announced its willingness to sign a confidentiality agreement, there is no agreement on terms and, to date, instead of agreeing to the standstill agreement to which other interested parties have agreed, Sears has proposed to reserve the right to launch a tender offer outside the process,” the statement said. In a standstill agreement, an unfriendly bidder agrees to limit its holdings of a target firm.

Sears' filing with the Securities and Exchange Commission that revealed the bid for Restoration Hardware also said that Sears was willing to agree to a standstill provision “subject to an exception which would enable Sears Holdings to commence a tender offer for all of the shares only at a price greater than that offered” in the management-led buyout Restoration Hardware agreed to earlier this month.

Restoration Hardware states, “the process is best served through all parties agreeing to the proposed standstill terms without preferential treatment of one party over another.”

On November 8, Restoration Hardware said that it had agreed to be acquired in a deal valued at $6.70 per share, or $267, involving management and private equity firm Catterton Partners. The retailer also said it would solicit competing proposals until Dec. 13.

Sears disclosed last week that it owns a 13.7% stake in Restoration Hardware, making it the chain's largest stockholder.

Loading links....
close

Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here