If K-Mart went bankrupt, HOW can they buy Sears for $11 billion?

[Deja Q]

I don't get it. :shrug:

http://www.twincities.com/mld/twincities/10203906.htm

[NV Whino]

1. Funny, I had the same question

Anybody have any answers?

[MSgt213]

2. It's all someone elses money. You could buy both companies if you stole

other peoples money like these big companies do everyday.

[Surikat]

3. I was wondering about that myself...

[quam]

4. A bit misleading...

I read the story on about three different outlets and each generally had the same headline relating to K-Mart purchasing Sears. When reading the stories, however, it became apparent that K-Mart and Sears are merging, with a slight tilt (regarding stock and CEO selection) to K-Mart. The headquarters and actual name of the company will remain "Sears" in Chicago.

Also, the combined entity plans to continue operating separate "K-Mart" and "Sears" locations. There will be workforce reductions, maybe more at the corporate levels? The entity plans to cross sell successful brands/items for each. For instance, the Craftsman brand will likely be available at K-Mart. The Martha line will likely be available at Sears.

[TexasChick]

5. HypnoToad, didn't you get the memo? Us peasants aren't suppose to

file for bankruptcy! It goes on our record for years, but the corporate fascists can! Remember, they own us, so it's perfectly okay if they do it! </sarcasm>

[wicket]

6. Kmart came out of bankruptcy a while back

I'll see if I can find a link.

[wicket]

7. Here's the link:

http://www.freep.com/money/business/ktime7_20030507.htm

May 6, 2003: Kmart emerges from bankruptcy.

[Maccagirl]

8. Their stock went from $15 a share on that day

to $101.50. Man, I should have gotten some of that action!

[LeftyMom]

9. They sold a lot of high-dollar real estate.

For example, several of the Kmarts in my town were closed last month and the buildings were sold to Home Depot.

Besides, they climbed out of Chapter 11 sometime last year, IIRC.

[tritsofme]

10. I was under the impression that Sears bought K-Mart

but maybe I mixed it up.

[SammyWinstonJack]

11. Did they get advice from the Donald?

Good question, one I was pondering when I heard this news. :shrug:

[mainegreen]

12. Stock swap maybe?

[karlrschneider]

13. Post-dated check.

:eyes: