Research Paper on:
Lands' End Acquisition by Sears

Unformatted Sample Text from the Research Paper:
gain a brand that is known for quality and service. Negotiations began in the summer of 2000 but were stalled for a number of reasons, primarily a dip in  the Lands End stock prices (Hajewski, 2002). When the share prices rose, Sears tried to reopen negotiations but Lands End CEO rejected their overtures (Hajewski, 2002). It was not until  February 2002 that Lands End decided to be acquired by another company (Hajewski, 2002). Another unnamed company was bidding against Sears; Lands End asked Sears to raise its bid to  $62 per share instead of $61 and the deal was sealed (Chandler, 2002). The deal totaled $1.9 billion (Chandler, 2002). The company will be a wholly owned subsidiary of Sears  with the CEO staying on and assuming responsibility for Sears direct customer base (Chain Store Age Executive with Shopping Center Age, 2002). A number of Lands End employees will  be given bonuses and salary increases. For instance, CEO David Dyer is being given a 31 percent salary increase, which takes his salary above $600,000 per year plus 40,000 shares  of stock in 2003 and another 50,000 non-qualified options on Sears stock that will vest over three years (Chandler, 2002). One group of 16 Lands End executives will  be given bonuses that are equal to 70 to 100 percent of their salary if they stay on with the company for one year, which averages out to $218,750 per  person (Chandler, 2002). Twenty-four other officers and key employees of Lands End will receive a bonus that is equal to half their annual salary and 69 other employees will receive  a bonus of 25 percent of their annual salary if they also stay on for one more year (Chandler, 2002). Additionally, Sears has agreed to not tamper with the