By
Reuters
Published
Feb 9, 2011
Download
Download the article
Print
Text size

DSW to merge with Retail Ventures; ups FY profit view

By
Reuters
Published
Feb 9, 2011

Feb 8 - Footwear retailer DSW Inc said it agreed to merge with its largest shareholder Retail Ventures Inc in an all-stock deal, and raised its full-year outlook.

DSW
DSW store in Michigan (photo by Dwight Burdette)

Retail Ventures will become a wholly-owned subsidiary of DSW in a tax-free exchange of shares at an exchange ratio of 0.435 DSW shares per RVI share, DSW said in a statement.

The merger eliminates the complexity and public company expenses associated with Retail Ventures, whose only operating business is its 62 percent stake in DSW, the company said.

DSW now expects a full-year earnings of $2.38-$2.42 from its prior outlook of $2.30-$2.40 a share.

DSW's fourth-quarter revenue rose 16 percent to $468.5 million, beating analysts' estimates of $445 million, according to Thomson Reuters I/B/E/S.

Shares of DSW closed at $36.23, while shares of Retail Ventures closed at $15.94 on Tuesday on the New York Stock Exchange. Both DSW and Retail Ventures shares were up 10 percent in extended trading.

(Reporting by NR Sethuraman in Bangalore; Editing by Unnikrishnan Nair)

© Thomson Reuters 2024 All rights reserved.