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Restoration still in sight for Sears

1/28/2008

HOFFMAN ESTATES, Ill. Sears Holdings may still be interested in buying Restoration Hardware, the company reported in a regulatory filing Sunday.

Sears Holdings first expressed interest in Restoration Hardware in November 2007, asking the retailer for more information and offering a $6.75 per share purchase price. However, Restoration Hardware is already involved in a merger agreement with Catterton Partners, which was amended last week.

Under the terms of the amended merger agreement, all of the outstanding shares of Restoration Hardware, other than those exchanged by certain stockholders participating with Catterton Partners in the transaction, will be acquired for a price per share equal to $4.50 in cash, the company reported. Catterton Partners, through its affiliates, also provided Restoration Hardware with a $25 million subordinated loan to help with the execution of the amendment.

Sears said that although it does not plan to pursue purchasing Restoration Hardware at the $6.75 per share price it originally proposed, it would still review its stake in the company and said it may engage in future discussions with Restoration Hardware concerning possible future transactions.

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