Setting the stage for a bruising proxy fight, Younkers Inc., the Des Moines-based department store chain, on Monday again rejected Carson Pirie Scott & Co.’s unsolicited purchase offer.
Younkers’ board said Milwaukee-based Carsons’ offer of $156 million, or $17 a share, was grossly inadequate and recommended that stockholders not tender their shares.
“The board does not intend to seek to sell Younkers to Carson Pirie Scott or any other buyer but rather intends to continue its business as an independent entity,” Younkers said. Stockholders will be best served by the company’s “continued pursuit of its strategic plan,” it said.
A Carsons spokesman said the response was not “unexpected.” He noted Carsons has nominated three people for election to Younkers’ board.
Younkers, with 53 department stores, initially rebuffed Carsons in November. It has since adopted a stockholder-rights plan to block unwanted offers.
Carsons operates 51 department stores and two furniture stores.
