Sears Holdings Names CFO Successor
Hoffman Estates, Ill. Sears Holdings Corp. announced that Michael D. Collins joined the company as senior VP, finance. Collins will succeed J. Miles Reidy as Sears Holdings’ CFO prior to the end of the 2008 fiscal year. Reidy, who intends to step down later in the year as the company’s CFO in order to attend to a family issue, will work with Collins to facilitate an orderly transition.
Collins most recently was the senior VP, planning and analysis, at General Electric Corp.’s NBC Universal Division.
Longs investor now supports CVS deal
CHICAGO Longs Drug Stores’ largest shareholder, Advisory Research, announced that in view of Walgreens’ withdrawal of its offer to purchase all of the outstanding shares of Longs Drug Stores and the turmoil in the markets, Advisory Research has determined to tender into the CVS Caremark tender offer all of its clients’ holdings of Longs representing approximately 9.2% of the outstanding Longs’ shares.
Walgreens withdrew its proposal has to acquire all of the outstanding shares of Longs Drug Stores for $75 per share in cash. The offer was originally proposed on Sept. 12 and declined by the board of directors of Longs in favor of the proposed acquisition by CVS/Caremark announced on Aug. 12.
Walgreens had proposed to acquire all of the outstanding shares of Longs Drug Stores for $75 per share in cash for a total purchase price of approximately $3 billion including the assumption of debt. The offer, which is subject to standard regulatory approvals and the completion of due diligence, represents a $3.50 per share premium over the cash purchase price to be paid to Longs shareholders under the proposed acquisition by CVS/Caremark announced on Aug. 12.
New York & Company lowers EPS outlook
NEW YORK New York & Company reported that it now expects to realize a loss of $4.5 million to $7 million, or 8 cents to 12 cents per diluted share, for the third quarter of fiscal 2008.
In the third quarter to date period (August and September), comparable-store sales declined by 10.6%, which is significantly lower than the company’s expectations.
The company currently believes that the economic environment will continue to be challenging and the levels of promotional activity will accelerate throughout the key holiday selling period. In response, the company will continue to operate in a disciplined manner, focusing on providing compelling fashion and value, while maintaining tight control of expenses and inventory and by limiting capital outflows.