Sears to Sell Most of Sears Canada Stake

Sears, sorely in need of cash, is selling most of its stake in its Canadian unit in an effort to raise up to $380 million. The sale of the majority of its 51 percent stake in Sears Canada Inc. to its own shareholders will give the retailer some breathing room as it heads into the crucial holiday season. The company board approved a rights offering of up to 40 million shares of Sears Canada Inc. Chairman and CEO Edward Lampert plans to fully exercise his subscription rights.