NEW YORK--Dickstein Partners, an investment firm seeking to acquire control of Hills Stores, said Monday that it is working on a plan to provide cash to Hills' shareholders who tender their stock in an offer Dickstein hopes to make.
The Dickstein group is soliciting Hills shareholders to nominate four Dickstein representatives on the Hills eight-member board. If itis successful, the group is planning to propose a 5.5 million share buyback of Hills stock for $27 a share payable in a new issue of 12 percent, 12-year Hills bonds.
On Monday, Dickstein said it plans to begin discussions with investment bankers in an effort to get a standby cash offer for the bonds at less than a 10 percent discount from face value.
Dickstein holds a 12.6 percent stake in Hills and states that it will not tender any of its shares into the offer, assuming there is an offer, "because it believes that the intrinsic value of the company is materially in excess of $27 per share."
Hills had no comment on the Dickstein announcement.
Its stock closed Monday at 22 3/4, up 1/4, on the New York Stock Exchange.
--Fairchild News Service

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