Sears Eyes Restoration Hardware
Updated from Nov. 19
Restoration Hardware, whose stock price has been on a steady decline since the beginning of the year, saw a sharp spike in after-hours trading on Monday, jumping 18.5% to $7.50. Meanwhile, shares of Sears were climbing 0.9% to $115.25.
According to a filing with the Securities and Exchange Commission, Sears has paid $30.2 million for 5.3 million shares of Restoration Hardware, a struggling chain based in Corte Madera, Calif., which earlier this month agreed to a $267 million buyout offer by private equity firm Catterton Partners.Under the terms of the buyout, Restoration Hardware, which has more than 100 stores in the U.S. and Canada, has until Dec. 13 to seek higher offers. Sears said in its filing that it intends to evaluate "the desirability of proposing an acquisition" of Restoration Hardware. Restoration Hardware, like many retailers in the home furnishing sector, has seen a fall-off in sales as the real estate market continues to slump. Sears Holdings, run by hedge fund guru Ed Lampert, currently owns the Kmart and Sears chains. Wall Street has been speculating if the company will make an acquisition with its large pile of cash.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV