Sears ponders its next move for Restoration Hardware
Sears Holdings Corp. still wants to acquire Restoration Hardware Inc., but it’s still unclear if Sears will honor a request from Restoration Hardware to sign a confidentiality and standstill agreement.
On Nov. 23, Sears, No. 7 in the Internet Retailer Top 500 Guide, announced a bid of $6.75 per share to acquire Restoration Hardware, No. 96 in the Internet Retailer Top 500 Guide.
That bid is a nickel higher than an earlier offer of $6.70 per share submitted on Nov. 7 by equity firm Catterton Partners to acquire all of the outstanding shares of Restoration Hardware.
In follow-up correspondence Sears, which already owns a 14% stake in Restoration Hardware, pressed the multi-channel home furnishings retailer for certain confidential financial and operating information, to complete the bid offer.
Now Restoration Hardware is asking Sears to sign another confidentiality and standstill agreement that in effect would delay a hostile takeover and give both retailers more time to conduct due diligence. "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,” says Restoration Hardware.
Sears has yet to respond to Restoration Hardware or disclose its intentions. However, an acquisition of Restoration Hardware would give Sears a bigger e-commerce footprint in the home furnishings and housewares space. Restoration Hardware generates online sales of more than $122 million.
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