Federated Department Stores Inc., Cincinnati, said it has completed its tender offer for the common shares of Fingerhut Cos. Inc. The department-store giant said that, based on a preliminary count, it bought more than 47.8 million Fingerhut common shares, representing 96.3% percent of all those outstanding, following the expiration of the offer on Wednesday.
Federated will acquire the Fingerhut common shares not purchased in the tender offer through a cash merger. In the merger, the remaining Fingerhut common shares will be converted into the right to receive the $25 per share amount paid in the tender offer.
The total acquisition price is $1.7 billion.
Federated financed the transaction through a combination of cash on hand and the proceeds of commercial paper borrowings, a portion of which are expected to be refinanced by long-term debt.
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