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Wednesday, May 14, 2014

Sears explores sale of stake in Canadian arm, no quick deal seen, (TSE: SCC.TO), (NASDAQ: SHLD)

Sears Holdings Corp said on Wednesday that it was considering the sale of its 51 percent stake in Sears Canada Inc, a move that could mean all of the Canadian department store operator goes up for sale.Shares of Sears Canada jumped 4.7 percent in midday trading, while Sears Holdings, which is controlled by hedge fund billionaire Eddie Lampert, fell 0.8 percent, reversing earlier modest gains.Sears Holdings, which operates more than 2,300 stores in the United States and Canada, said it would hire an investment bank to help explore alternatives for its stake in the Canadian company.Desjardins Securities analyst Keith Howlett said that suggested Sears had already decided to exit Canada, but had not yet determined how.

Sears Canada Inc. (Sears) is a multi-channel retailer. Shares of SCC traded higher by 3.43% or $0.54/share to $16.30. In the past year, the shares have traded as low as $8.84 and as high as $19.89. On average, 19681 shares of SCC.TO exchange hands on a given day and today's volume is recorded at 39067.

Sears Holdings Corporation (Holdings) is a retailer with 2,172 full-line and 1,338 specialty retail stores in the United States operating through Kmart Holding Corporation (Kmart) and Sears, Roebuck and Co. Shares of SHLD fell by 5.85% or $-2.53/share to $40.70. In the past year, the shares have traded as low as $31.26 and as high as $67.50. On average, 1425750 shares of SHLD exchange hands on a given day and today's volume is recorded at 2571143.



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