CNN: K-Mart buying Sears

[Tesibria]

http://money.cnn.com/2004/11/17/news/fortune500/sears_kmart/index.htm?cnn=yes

NEW YORK (CNN/Money) - Kmart Corp. is acquiring Sears, Roebuck & Co. in an $11 billion merger that aims to merge the best of both brands and create a low-priced shopping haven.

-snip-
The company said it will continue to operate with both brand names but that some Kmart stores will shift to Sears locations as Sears continues to move away from mall locations.

One retail analyst said he's confident the combined companies will not hang onto all 3,500 stores they own between them.
-snip-
But he said that even the combined company will face a challenge in competing with the more successful brands now in the market.

"The immediate impact is on Sears' other mall-based rivals such as JC Penney and not necessarily on Wal-Mart and Target," said Cohen.

Sears shares rose 12 percent in before-hours trading on Inet, while Kmart was up nearly 3 percent, according to Reuters.

The new company will be known as Sears Holdings and be based at Sears current headquarters in suburban Chicago. But both names will continue to be used on stores.
-snip-

[maddezmom]

1. dupe

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x997341

[Kagemusha]

2. This sounds like Compaq and HP's merger.

A horizontal merger that solves nothing fundamental.

[Moderator]

3. Duplicate topic--Please continue discussion here:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x997341