NEW YORK — The bidding war for The Elder-Beerman Department Stores Corp. is getting red hot.
The management-aligned buyout group Wright Holdings on Friday upped its offer to acquire EB to $7.80 a share, or $100.8 million, plus the assumption of about $110 million in debt.
That trumped by 55 cents The Bon-Ton Stores Inc.’s Wednesday offer of $7.25, or $93 million, exclusive of debt.
The battle for Dayton, Ohio-based EB began in June when the regional chain agreed to be acquired by Wright for $6 a share plus debt assumption. Wright’s bid is now 30 percent greater than its initial offer.
EB shares closed at $7.20, up 1 cent, or 0.1 percent, in Friday trading on the New York Stock Exchange.
As part of the amended merger agreement with Wright Holdings that encompassed the higher bid, EB said it will also be freer in its ability to negotiate with York, Pa.-based Bon-Ton.
EB also agreed to increase its termination fee to up to $2.5 million from $2 million and raised its expense reimbursement fee to up to $1.5 million from $1 million should the deal with Wright break up.