A consolidation of investors and developers has tendered an unsolicited bid for ShopKo Stores Inc. (Green Bay, Wis.). The retailer had signed a definitive merger agreement in April to be acquired by Badger Retail Holding Inc., an affiliate of Minneapolis-based private equity investment firm Goldner Hawn Johnson & Morrison Inc.
The new offer, valued at slightly more than $1 billion, came from a group made up of Sun Capital Partners Group IV Inc., Developers Diversified Realty Corp., Lubert-Adler Partners and Elliott Management Corp. The new party said it would discharge ShopKo’s breakup fee obligation to Badger upon the execution of a definitive merger agreement.
ShopKo, whose special committee recommended the Badger transaction to shareholders, said a special meeting of shareholders to vote on the merger agreement with Badger remains scheduled for October 17.