TRU stockholders approve $6.6 billion merger
Staff -- Kids Today, 7/1/2005
Wayne, N.J.— Stockholders of Toys "R" Us have approved plans for the company to be acquired by a private investment group consisting of Bain Capital Partners, Kohlberg Kravis Roberts & Co. and Vornado Realty Trust.
Valued at $6.6 billion, the merger is expected to close by the end of this month.
The acquisition was approved by 98% of the shareholders present during a special meeting held in New York last month. The number of shares voting to adopt the merger agreement represents about 61% of the total number of shares outstanding and entitled to vote. Under the terms of the deal, company stockholders will receive $26.75 per share in cash.
CEO John Eyler is leaving the company when it goes private, and Richard Markee, vice chairman of the company and president of Babies "R" Us, will serve as interim CEO.
Also last month, the Court of Chancery in the state of Delaware in and for New Castle County denied the request of the Iron Workers of Western Pennsylvania Pension & Profit Plans and Jolly Roger Fund LP for a preliminary injunction and delay of the closing of the merger.
