The Elder-Beerman Stores Corp. announced that it amended its existing merger agreement with Wright Holdings, Inc. to increase the consideration payable to Elder-Beerman shareholders by Wright Holdings from $7.05 per share in cash to $7.80 per share in cash. Wright Holdings has also provided to us copies of revised commitment letters from its financing sources to reflect the increased consideration.
Elder Beerman also announced that under its merger agreement, as amended, it will no longer be subject to the same restrictions on its ability to engage in discussions and negotiations with The Bon-Ton Stores, Inc.
In consideration for the price increase and the ability to engage in negotiations, Elder-Beerman agreed to increase by $500,000 both the cap on its payment obligations for the reimbursement of expenses and the termination fee that may become payable under certain circumstances if the merger agreement with Wright Holdings were terminated.
