CARSON’S BACKING YOUNKER’S-PROFFITT’S MERGER
NEW YORK — Carson Pirie Scott & Co. has officially abandoned its efforts to acquire Younkers Inc. and will support the proposed merger of Younkers with Proffitt’s Inc. Carson’s, which holds 11 percent of Younkers common stock, said Wednesday it will vote its shares in favor of the merger. Based on the current price of Younkers stock, Carson’s will get $9 million from selling its 1,047,500 shares after the merger. These proceeds would be partially offset by the $6 million Carson’s spent attempting to acquire Younkers last year. Carson’s has also agreed to buy two Younkers stores for $5 million, at the Cherryvale Mall and Machesney Park Mall, both in Rockford, Ill. Carson’s expects to complete the deal in March and will operate the stores under its Bergner’s logo.
Carson’s stock closed at 19 3/4, down 1/8, on the New York Stock Exchange Wednesday. In over-the-counter trading, Younkers closed at 25 1/8, up 1/8, and Proffitt’s closed at 25 3/4, down 1/4.
Last year, Carson’s pursued a hostile takeover of the Des Moines, Iowa-based Younkers with cash tender offers from $17 to $20 a share. Last October, Proffitt’s and Younkers agreed to an exchange-of-stock transaction valued at $253 million. It will create a chain with $1.3 billion sales.