The Bon-Ton Stores, Inc. on Tuesday announced that it had submitted a proposal to the board of directors of The Elder-Beerman Stores Corp. that provides for a combination of the two companies in which all Elder-Beerman shareholders would receive $7.00 per share in cash for their common stock.
In a letter from Tim Grumbacher, Chairman and Chief Executive Officer of The Bon-Ton, to Steven Mason, Chairman of Elder-Beerman, Mr. Grumbacher stated that The Bon-Ton's board of directors had determined that a combination of the two companies would be in the best interests of both companies' shareholders, customers and employees and that The Bon-Ton is prepared immediately to commence its due diligence with the goal of completing the transaction by the end of September.
