NEW YORK--Carson Pirie Scott & Co.'s cash tender offer to acquire Younkers Inc. for $19 per share has expired without the purchase of any shares.
A spokesman for Carson's said it was prevented from purchasing the shares because of a Younkers poison pill, which made untendered shares too costly. The pill cannot be removed unless 80 percent of Younkers shares are tendered.
As of June 30, 54.4 percent, or 3,832,546 shares, had tendered into the offer, including 1.05 million held by Carson's.
Despite the expiration, Stanton J. Bluestone, Carson's chairman and chief executive officer, said the retailer's "desire to acquire Younkers is undiminished." He said, "Despite the Younkers board's rejection of our $20-per-share acquisition proposal, we remain committed to acquiring Younkers."
Carson's, based in Milwaukee, had been offering $19 a share in the offer but said it would pay $20 if it was able to enter an acquisition agreement by July 1 and complete the deal by Sept. 1. Carson's first offered $17 a share on Jan. 15 and raised the bid to $19 on March 9.
In a separate statement, Younkers, based in Des Moines, Iowa, said it was "extremely pleased" Carson's allowed its "grossly inadequate" tender offer to terminate, noting that the attempted takeover has been "extremely expensive" and "distracting." Although the litigation brought by Carson's continues, Younkers said it hopes to have it resolved in its favor later this summer.
Separately, Younkers said sales in June rose 5.7 percent, to $54.5 million from $51.5 million. The firm had the same number of stores in both periods. Year-to-date sales rose 2.3 percent to $222 million from $217 million.--Fairchild News Service

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