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Kmart, Sears set shareholder merger vote

/ Source: The Associated Press

Kmart Holding Corp. and Sears, Roebuck and Co. said Monday they will hold special meetings of their shareholders on March 24 to vote on the companies’ proposed merger.

The meetings will be held at Sears headquarters in the Chicago suburb of Hoffman Estates, Ill., which will serve as the headquarters of the combined company following the merger.

The new company, Sears Holdings Corp., will trade on the Nasdaq market as SHLD, the company said Monday.

The registration statement filed with the Securities and Exchange Commission in connection with the proposed merger has been declared effective, and joint proxy statements will be mailed to shareholders starting Tuesday.

Under the merger agreement, Sears Holdings will have a 10-member board of directors, which will include seven members from the current Kmart board and three members from the current Sears board.

Sears Holdings will be the holding company for the two businesses, which will continue to operate separately under their respective brand names.

The holding company also announced Monday that William C. Crowley, who is the senior vice president of finance for Kmart, will become the new company’s chief financial officer.

Glenn R. Richter, who is Sears’ executive vice president and CFO, will leave the company when the merger is completed.

Kmart’s $11 billion acquisition of the department store chain, which was announced in November, will create the nation’s third-largest retailer.