Clarification: Sears-Orchard spinoff story

AP News
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Posted: Jun 24, 2011 4:21 PM
Clarification: Sears-Orchard spinoff story

In a story June 23, The Associated Press reported that Sears Holdings Corp. plans to spin off its Orchard Supply Hardware Stores Corp. business as a separate, publicly traded company.

The story noted that 80 percent of Orchard will be owned by Sears shareholders and 20 percent by Ares Management LLC, but it should not have characterized the planned market debut of Orchard shares as an initial public offering. Orchard stock will not be initially sold to the public. It will be distributed to current Sears shareholders who will then be able to trade them on the open market.