Payless will pay $800M for rival stride rite
By TIMES WIRES
Published May 23, 2007
KANSAS CITY, Mo.
Payless ShoeSource Inc. said Tuesday it will buy competing shoe store chain Stride Rite for about $800-million. Once the deal is complete, probably in the third quarter, Payless said it will change its corporate name to Collective Branding Inc., a holding company that will operate the Payless and Stride Rite chains under their own names, as well as Collective Licensing International, a brand development and licensing company. Payless, based in Topeka, Kan., announced in March that it was buying Denver-based Collective International LP for $91-million. Shareholders of Stride Rite, which operates 300 stores and licenses or owns such brands as Keds, Saucony and Tommy Hilfiger Footwear, would receive $20.50 per share, a 32.6 percent premium over the $15.45 price at which shares closed in trading Tuesday. Collective Branding would also assume Stride Rite debt.
Former secretary faces sentencing
A former Coca-Cola secretary's claim of innocence during her trial could weigh against her when she is sentenced today for conspiring to steal trade secrets from the world's largest beveragemaker. Joya Williams faces up to 10 years in prison for the foiled scheme to steal secrets from Atlanta-based Coca-Cola and sell them to Purchase, N.Y.-based PepsiCo Inc. for at least $1.5-million. She was convicted Feb. 2. Williams, 42, asserted her innocence and testified at the trial that she did nothing wrong in the Coke case.
Sallie Mae will be getting a new CEO
SLM Corp., the student lender commonly known as Sallie Mae, said Tuesday that Thomas J. Fitzpatrick, vice chairman and chief executive, is resigning to pursue other interests and being replaced by the company's chief financial officer. Over the next few weeks, Fitzpatrick, 58, will serve in an advisory role to facilitate the transition, according to a company release. C.E. Andrews, 55, Sallie Mae's executive vice president and CFO, will replace Fitzpatrick.
BancTrust expands Alabama presence
BancTrust Financial Group Inc., a bank holding company with offices in Alabama and the Florida Panhandle, said Tuesday that it will acquire Peoples BancTrust Co. for about $153.2-million in cash and stock.
T-bill rates grow
Interest rates on short-term Treasury bills rose in Monday's auction with the rate on three-month bills reaching its highest level in three weeks. The Treasury Department auctioned $15-billion in three-month bills at a discount rate of 4.775 percent, up from 4.730 percent last week. Another $13-billion in six-month bills was auctioned at a discount rate of 4.810 percent, up from 4.735 percent last week.