Department store chain Elder-Beerman Corp (Dayton, Ohio) announced that The Bon-Ton Stores Inc. (York, Pa.) has offered $7 a share for the company, the highest bid so far in a battle for the troubled retailer.
In a letter from Tim Grumbacher, chairman and ceo of The Bon-Ton, to Steven Mason, chairman of Elder-Beerman, Grumbacher stated that The Bon-Ton's board of directors had determined that merging the two companies would be in the best interests of both companies' shareholders, customers and employees. The retailer also indicated that it is immediately prepared to enter into a confidentiality agreement, with the goal of completing a transaction by the end of September.
However, Elder-Beerman also emphasized that there can be no assurance of the outcome of discussions with The Bon-Ton and that it is continuing to proceed under its merger agreement with Dayton-based Wright Holdings Inc., which remains in effect. As previously announced, on June 25, Elder-Beerman entered into an agreement and plan of merger with Wright Holdings for $6 per share in cash.
In other news, The Bon-Ton announced it has signed a lease to operate a store in Latham, N.Y. With the addition of the Latham store, the company will have 27 stores in the state of New York.
The Bon-Ton will operate a 65,700-square-foot store in a former Ames space at New Loudon Center. The premises will undergo a major renovation, with an expected opening in the fall of 2003.
“We are very excited about our new store in the Latham trading area,” says Jim Baireuther, vice chairman and chief administrative officer. “Entry into a market of this size is consistent with our long-term growth strategy to serve the secondary market niche and provide customers with fashion, value, quality and the convenience of neighborhood shopping.”
The Bon-Ton Stores operates 72 department stores in Pennsylvania, New York, Maryland, New Jersey, Connecticut, Massachusetts, New Hampshire, Vermont and West Virginia.