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Article: Hills' merger hunt filled with hurdles. (Hills Stores Co.)
- Article from:
- WWD
- Article date:
- February 14, 1996
- Author:
CopyrightCOPYRIGHT 1996 Conde Nast Publications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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NEW YORK -- Hills Stores Co., one of the stronger regional discounters, wants to take over another mass merchant but faces some obstacles in pulling off its latest strategy for long-term survival.
Market sources say the merger costs, excluding the actual price tag, would be high -- $100 million or more. In addition, there are few suitable takeover targets; Hills has a pricing structure that differs from most discounters, and its plan to place its management at the helm of a combined operation may deter some potential partners.
Among its possible merger candidates are Ames, Bradlees, Caldor and Rose's Stores. Bradlees and Caldor are operating in Chapter 11, and ...