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
- $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
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV