erence that "it is a good opportunity to unite two companies – the Kmart and the Sears - into one, to transform them into a great corporation of the 21st century. I think there's a presumption that one will see a lot of store closings. That's a wrong presumption. Our programme is aimed to keep as many stores open as possible." Also, Mr. Lampert denied the corporation has put the Lands' End casual clothing chain on the market, as an industry publication reported earlier this month. He said that "lands' end is not for sale". It is a great American brand, and I think it is a brand that we could run very well." Mr. Lampert thinks that the corporation is determined to be successful.

The merger brings together some other powerful brands that have succeeded while their parent companies' retail results have sagged, among them Craftsman tools, Kenmore appliances and, from Kmart, Jaclyn Smith and Joe Boxer. Employees have been concerned about widespread job cuts when the new company moves to close stores and conver

The Kmart Holding Corporation informed about its intention to acquire Sears and all business publications all over the country reported on the outcomes on the retailers, the real estate implications and the resolve of this step. It is clear that the acquisition of Sears by Kmart Holding Corporation may change the course of future corporation’s actions and plans. The Kmart is presently number three retailer after Wal-Mart and Target in the country.

Tom Speh, the Rees Distinguished Professor of Distribution at Miami University, thinks the acquisition is a wrong step in this situation: "I do not think these companies have clear aims and will fit each other," he states. "It is not a similar situation with a merger of Kraft and Nabisco where one takes present opportunities and sells more product to reach the greater benefit. Until this moment, I do not see a weighty reason for acquisition."

The new company will start selling brand products in Sears locations and using Kenmore appliances in Kmart stores. The corporation will carry out the research work according to which it will examine which brands work in which retail environments. Nevertheless, there question is whether Kenmore appliances fit in the same stores and whether one line of products gives way to the other. In addition, the new Holdings Corporation has to master the science in order to get essential savings in logistics administrative prices. For instance, the new entity could reduce its expenses in demand planning and acquire more transportation buying validity. The thing is that the corporation sells more real estate - consequently, it gets more profit over a higher volume to commit in new material handling technology.

The next problem is whether the new Sears Holdings Corporation will announce about a new mandate from its suppliers concerning the adoption of RFID technology. It will become clear only after the acquisition will be approved by regulators and shareholders. Tompkins' opinion is the following: "I do not think RFID technology will be presented in the nearest future," he points out. "The Kmart and Sears companies represent quite the opposite cultures and they will be out of business together."

The shares of Kmart and Sears companies, two old-line department-store chains that were experiencing a stock- market renaissance, surged on. Under the transaction, a holding corporation will buy out shareholders of these two constituents. Kmart shareholders will acquire a share of Sears Holdings for each Kmart share. The companies had strictly equal market capitalizations heading into the merger, with Sears' 206.7 million outstanding shares worth about $9.35 billion and Kmart's 89.6 million shares worth $9.07 billion.

Examined as an acquisition of Sears, the cash price is a 10.5% premium to Tuesday's close while the stock component is valued at a 11% premium. Sears stock was recently up $10.10, or 22.2%, to $55.30. Kmart shares were also rising greatly, recently up $17.10, or 16.5%, to $118.33. The merger pairs two companies whose market price comes mostly from perceptions about the value of the real estate underlying their stores. Kmart shares have nearly quintupled since Lampert brought the company out of bankruptcy in 2003 despite reporting month after month of declining same-store sales.

Highlighting that, Kmart reported a third-quarter profit of $553 million, or $5.45 a share, Wednesday, roughly 89% of which were gains from one-time items, mostly real estate sales. Same-store sales plunged 12.8% in the quarter from a year ago, while overall sales fell 13.7% from last year to $4.4 billion. Consequently, the Kmart Holding Corporation has finished its $12 billion acquisition of Sears Corporation, having become the country's third-greatest retailer with a planned $54 billion in sales per year. The Sears' suburban Chicago headquarters now becomes the base for a corporation.

Kmart Chairman Edward Lampert, the billionaire hedge-fund manager who was the largest individual shareholder in these two companies, declared at a press conference that "it is a good opportunity to unite two companies – the Kmart and the Sears - into one, to transform them into a great corporation of the 21st century. I think there's a presumption that one will see a lot of store closings. That's a wrong presumption. Our programme is aimed to keep as many stores open as possible." Also, Mr. Lampert denied the corporation has put the Lands' End casual clothing chain on the market, as an industry publication reported earlier this month. He said that "lands' end is not for sale". It is a great American brand, and I think it is a brand that we could run very well." Mr. Lampert thinks that the corporation is determined to be successful.

The merger brings together some other powerful brands that have succeeded while their parent companies' retail results have sagged, among them Craftsman tools, Kenmore appliances and, from Kmart, Jaclyn Smith and Joe Boxer. Employees have been concerned about widespread job cuts when the new company moves to close stores and convert

The corporation will carry out the research work according to which it will examine which brands work in which retail environments. Nevertheless, there question is whether Kenmore appliances fit in the same stores and whether one line of products gives way to the other. In addition, the new Holdings Corporation has to master the science in order to get essential savings in logistics administrative prices. For instance, the new entity could reduce its expenses in demand planning and acquire more transportation buying validity. The thing is that the corporation sells more real estate - consequently, it gets more profit over a higher volume to commit in new material handling technology.

The next problem is whether the new Sears Holdings Corporation will announce about a new mandate from its suppliers concerning the adoption of RFID technology. It will become clear only after the acquisition will be approved by regulators and shareholders. Tompkins' opinion is the following: "I do not think RFID technology will be presented in the nearest future," he points out. "The Kmart and Sears companies represent quite the opposite cultures and they will be out of business together."

The shares of Kmart and Sears companies, two old-line department-store chains that were experiencing a stock- market renaissance, surged on. Under the transaction, a holding corporation will buy out shareholders of these two constituents. Kmart shareholders will acquire a share of Sears Holdings for each Kmart share. The companies had strictly equal market capitalizations heading into the merger, with Sears' 206.7 million outstanding shares worth about $9.35 billion and Kmart's 89.6 million shares worth $9.07 billion.

Examined as an acquisition of Sears, the cash price is a 10.5% premium to Tuesday's close while the stock component is valued at a 11% premium. Sears stock was recently up $10.10, or 22.2%, to $55.30. Kmart shares were also rising greatly, recently up $17.10, or 16.5%, to $118.33. The merger pairs two companies whose market price comes mostly from perceptions about the value of the real estate underlying their stores. Kmart shares have nearly quintupled since Lampert brought the company out of bankruptcy in 2003 despite reporting month after month of declining same-store sales.

Highlighting that, Kmart reported a third-quarter profit of $553 million, or $5.45 a share, Wednesday, roughly 89% of which were gains from one-time items, mostly real estate sales. Same-store sales plunged 12.8% in the quarter from a year ago, while overall sales fell 13.7% from last year to $4.4 billion. Consequently, the Kmart Holding Corporation has finished its $12 billion acquisition of Sears Corporation, having become the country's third-greatest retailer with a planned $54 billion in sales per year. The Sears' suburban Chicago headquarters now becomes the base for a corporation.

Kmart Chairman Edward Lampert, the billionaire hedge-fund manager who was the largest individual shareholder in these two companies, declared at a press conference that "it is a good opportunity to unite two companies – the Kmart and the Sears - into one, to transform them into a great corporation of the 21st century. I think there's a presumption that one will see a lot of store closings. That's a wrong presumption. Our programme is aimed to keep as many stores open as possible." Also, Mr. Lampert denied the corporation has put the Lands' End casual clothing chain on the market, as an industry publication reported earlier this month. He said that "lands' end is not for sale". It is a great American brand, and I think it is a brand that we could run very well." Mr. Lampert thinks that the corporation is determined to be successful.

The merger brings together some other powerful brands that have succeeded while their parent companies' retail results have sagged, among them Craftsman tools, Kenmore appliances and, from Kmart, Jaclyn Smith and Joe Boxer. Employees have been concerned about widespread job cuts when the new company moves to close stores and conver

ll be presented in the nearest future," he points out. "The Kmart and Sears companies represent quite the opposite cultures and they will be out of business together."

The shares of Kmart and Sears companies, two old-line department-store chains that were experiencing a stock- market renaissance, surged on. Under the transaction, a holding corporation will buy out shareholders of these two constituents. Kmart shareholders will acquire a share of Sears Holdings for each Kmart share. The companies had strictly equal market capitalizations heading into the merger, with Sears' 206.7 million outstanding shares worth about $9.35 billion and Kmart's 89.6 million shares worth $9.07 billion.

Examined as an acquisition of Sears, the cash price is a 10.5% premium to Tuesday's close while the stock component is valued at a 11% premium. Sears stock was recently up $10.10, or 22.2%, to $55.30. Kmart shares were also rising greatly, recently up $17.10, or 16.5%, to $118.33. The merger pairs two companies whose market price comes mostly from perceptions about the value of the real estate underlying their stores. Kmart shares have nearly quintupled since Lampert brought the company out of bankruptcy in 2003 despite reporting month after month of declining same-store sales.

Highlighting that, Kmart reported a third-quarter profit of $553 million, or $5.45 a share, Wednesday, roughly 89% of which were gains from one-time items, mostly real estate sales. Same-store sales plunged 12.8% in the quarter from a year ago, while overall sales fell 13.7% from last year to $4.4 billion. Consequently, the Kmart Holding Corporation has finished its $12 billion acquisition of Sears Corporation, having become the country's third-greatest retailer with a planned $54 billion in sales per year. The Sears' suburban Chicago headquarters now becomes the base for a corporation.

Kmart Chairman Edward Lampert, the billionaire hedge-fund manager who was the largest individual shareholder in these two companies, declared at a press conference that "it is a good opportunity to unite two companies – the Kmart and the Sears - into one, to transform them into a great corporation of the 21st century. I think there's a presumption that one will see a lot of store closings. That's a wrong presumption. Our programme is aimed to keep as many stores open as possible." Also, Mr. Lampert denied the corporation has put the Lands' End casual clothing chain on the market, as an industry publication reported earlier this month. He said that "lands' end is not for sale". It is a great American brand, and I think it is a brand that we could run very well." Mr. Lampert thinks that the corporation is determined to be successful.

The merger brings together some other powerful brands that have succeeded while their parent companies' retail results have sagged, among them Craftsman tools, Kenmore appliances and, from Kmart, Jaclyn Smith and Joe Boxer. Employees have been concerned about widespread job cuts when the new company moves to close stores and conver

ket price comes mostly from perceptions about the value of the real estate underlying their stores. Kmart shares have nearly quintupled since Lampert brought the company out of bankruptcy in 2003 despite reporting month after month of declining same-store sales.

Highlighting that, Kmart reported a third-quarter profit of $553 million, or $5.45 a share, Wednesday, roughly 89% of which were gains from one-time items, mostly real estate sales. Same-store sales plunged 12.8% in the quarter from a year ago, while overall sales fell 13.7% from last year to $4.4 billion. Consequently, the Kmart Holding Corporation has finished its $12 billion acquisition of Sears Corporation, having become the country's third-greatest retailer with a planned $54 billion in sales per year. The Sears' suburban Chicago headquarters now becomes the base for a corporation.

Kmart Chairman Edward Lampert, the billionaire hedge-fund manager who was the largest individual shareholder in these two companies, declared at a press conference that "it is a good opportunity to unite two companies – the Kmart and the Sears - into one, to transform them into a great corporation of the 21st century. I think there's a presumption that one will see a lot of store closings. That's a wrong presumption. Our programme is aimed to keep as many stores open as possible." Also, Mr. Lampert denied the corporation has put the Lands' End casual clothing chain on the market, as an industry publication reported earlier this month. He said that "lands' end is not for sale". It is a great American brand, and I think it is a brand that we could run very well." Mr. Lampert thinks that the corporation is determined to be successful.

The merger brings together some other powerful brands that have succeeded while their parent companies' retail results have sagged, among them Craftsman tools, Kenmore appliances and, from Kmart, Jaclyn Smith and Joe Boxer. Employees have been concerned about widespread job cuts when the new company moves to close stores and conver

erence that "it is a good opportunity to unite two companies – the Kmart and the Sears - into one, to transform them into a great corporation of the 21st century. I think there's a presumption that one will see a lot of store closings. That's a wrong presumption. Our programme is aimed to keep as many stores open as possible." Also, Mr. Lampert denied the corporation has put the Lands' End casual clothing chain on the market, as an industry publication reported earlier this month. He said that "lands' end is not for sale". It is a great American brand, and I think it is a brand that we could run very well." Mr. Lampert thinks that the corporation is determined to be successful.

The merger brings together some other powerful brands that have succeeded while their parent companies' retail results have sagged, among them Craftsman tools, Kenmore appliances and, from Kmart, Jaclyn Smith and Joe Boxer. Employees have been concerned about widespread job cuts when the new company moves to close stores and convert hundreds of Kmart stores this year to the new Sears Essential convenience-oriented format. But officials said that while some layoffs will be announced by the end of April from among the 5,000 people working at the two headquarters, the vast majority of the work force of 400,000 will keep their jobs as Sears Holdings focuses on improving retail sales.

The deal closed shortly after the back-to-back shareholder meetings. 68% of Kmart shareholders voted to approve the deal in results declared at a sparsely attended session lasting five minutes.