Shareholders to vote Dec. 23 on proposed ShopKo merger |

Shareholders to vote Dec. 23 on proposed ShopKo merger

GREEN BAY, Wis. – ShopKo Stores Inc. said Friday its shareholders will vote Dec. 23 on a proposed merger with an affiliate of Sun Capital Partners Inc.An affiliate of Boca Raton, Fla.-based Sun Capital is buying ShopKo for $29 a share, plus an annual 6 percent over the share price prorated for each day starting Dec. 15 until the deal closed.Immediately before signing the deal last month, ShopKo said it had called off a merger agreement to be bought by an affiliate of Goldner Hawn Johnson & Morrison Inc., and agreed to pay it a $13.5 million breakup fee.Goldner Hawn said it recently increased its bid to $29 a share.ShopKo’s board said it made the decision between the two bids based on “Sun Capital’s financial resources, experience in the retail industry, relationships with key retail vendors and other suppliers, and experience in successfully completing transactions of this type.”Sun Capital has acquired some 100 companies worldwide with sales exceeding $22 billion.The investment firm specializes in leveraged buyouts of companies that are ranked first or second in their respective industries, and recently started a fund that acquires minority interests in bankrupt or underperforming firms.ShopKo spokesman John Vigeland said Friday the company anticipates shareholders will approve the deal.The company runs 137 ShopKo retail stores and 219 Pamida stores in 23 states and competes with Wal-Mart Stores Inc., Kmart Holding Corp. and Target Corp..

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