NEW YORK -- Hills Stores Co. management, which has been fighting off a hostile takeover bid by Dickstein & Co. LP, said Wednesday that its board approved a plan to repurchase 3 million Hills shares for $75 million, or $25 a share.

The proposal follows a Dickstein plan to take control of Hills and buy back 4.63 million Hills shares at $27 a share in new debentures.

Hills said it expects to finance the repurchase with cash available and additional borrowings of $40 million. Since provisions of outstanding senior notes currently restrict the amount of funds it may use to repurchase its shares, Hills proposes either to form a new holding company or obtain a waiver from the senior note holders to permit the offer.

Hills, a discount store operator, has its headquarters in Canton, Mass. Dickstein is an investment company based here.

To access this article, click here to subscribe or to log in.

load comments
blog comments powered by Disqus