Sears Holdings Buys More Sears Canada Shares - Todd Sullivan

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Sears Holdings Buys More Sears Canada Shares
Mar 18, 2009 07:30 PM UTC

Todd Sullivan

Return	Risk
-25.32%	HIGH

Analyst

Profile & Performance

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Symbol	Sentiment	Start	Return	Closed
SHLD	n/a
SCC	n/a

Via ValuePlays:

Vintage Lampert, buying shares of a company he offer to buy for less than he offered two years ago...patience..

From the National Post

Sears Holdings Corp. (SHLD) continues to add to its nearly 73% stake in Sears Canada Inc. The U.S. retailing giant bought 29,600 shares of its Canadian subsidiary for around $17.85 per share between March 9 and March 10, 2009. This brought SHLD Acqusition Corp.â€™s holdings in the Canadian retailer to 20,756,173 shares. The transactions follow Sears Holdings Corp.â€™s purchase of 32,000 shares on Dec. 1, 2008.

In November 2006, Sears Canada shareholders rejected an $888-million bid by its parent after some investors said the $17.97 per share takeover price was too low. However, the potential deal sent Sears Canada shares nearly 50% higher since the offer was made to almost $30 per share.

Now follow this. As of 1/31, Sears Canada (SCC) had 107 million shares out and $891 million in cash on the books or, $8.32 a share. So, Lampert pays $17 a share, and then gets to add the $8.32 a share to Sears Holdings cash balance because of his ownership percentage for a nice 52% return. Beautiful...

Disclosure ("none" means no position):Long SHLD, none

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