Shareholders at Sears Canada largely rejected a buyout bid from Sears Holdings ( SHLD), but the U.S. parent extended its tender offer for the remainder of the shares until March 31 without raising its bid. Sears Holdings, the retail empire formed last year by hedge fund guru Ed Lampert, said Monday that it now owns about 63.2% of Sears Canada, up from its previous stake of about 53%. The initial deadline for Sears Holdings' offer to buy the entire company for C$16.86 a share came Friday. If it doesn't win its bid the second time around, the parent threatened to cut off dividend payments to Sears Canada shareholders. Shares of Sears Holdings were recently down $1.60, or 1.2%, to $133.30. The stock caught a bid last week after the company reported better-than-expected sales and earnings for its holiday quarter. Sears' bid to buy its Canadian counterpart was jeopardized last month when a group of independent Sears Canada directors advised shareholders to reject the offer on grounds that it was too low. They cited a report from the company's financial adviser, Genuity Capital Markets, that valued the company at C$19 to C$22.25 a share. Sears Holdings responded aggressively by disputing the report. It has said that if shareholders refuse its offer, they could find themselves owning a company that faces widespread competitive threats and doesn't enjoy the financial and operational backing of its parent. Natcan Investment Management, whose 9% stake in Sears Canada makes it the retailer's largest independent shareholder, agreed to tender its 9.7 million shares to the offer. Also, Sears Holdings said five of Sears Canada's eight top executives said they planned to tender all of their shares or sell into the market Friday. The other three executives, including CEO Brent Hollister, had already sold a "significant portion" of their stock.