YOUNKERS NIXES BID BY CARSON’S
NEW YORK — Younkers Inc. said Monday its board has rejected Carson Pirie Scott’s $17-a-share bid for the company as too low.
Younkers informed Carson’s of its directors’ unanimous decision to reject the bid in a Nov. 7 letter to the Milwaukee-based retailer’s board. “Our board took considerable time reviewing Carson’s offer,” said Younkers’ chief financial officer, Alan Raxter. “They thought the offer was too low and wanted us to focus on the fourth quarter.”
Asked if Younkers is open to negotiating with Carson’s, Raxter responded, “The ball is in their court; the next move is theirs. We’re not putting the company up for auction. The fourth quarter is very important to us, and we wanted to concentrate on it.”
Carson’s bid totaled $152 million plus the assumption of $80 million in Younkers’ debt.
As reported, on Oct. 31 Younkers adopted a shareholder protection rights plan, and later that day, Carson’s officials had requested a meeting with the Des Moines, Iowa, retailer, saying they were prepared to negotiate. Financial analysts expected the rights plan to drive up Carson’s bid.
Edward Carroll, executive vice president of marketing at Carson’s, said the retailer likely would respond to the rejection today.