Eddie Lampert, Fairholme Capital end talks on possible Sears Canada bid

Billionaire U.S. hedge fund manager Eddie Lampert and Fairholme Capital Management, LLC say they have ended their joint negotiations on a possible bid for Sears Canada.

In a release issued Friday morning, Lampert's firm, ESL Partners L.P., and Fairholme said they terminated their joint engagement of Canadian legal counsel for a possible transaction involving the retailer, which is currently in the process of liquidating inventory and preparing to close dozens of stores as it restructures under creditor protection.

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However, ESL said it may still consider a possible bid either by itself or with another partner.

Lampert's firm said it is also considering "a potential sale of some or all of its common shares of the Issuer in order to generate a tax loss for ESL and their investors."

ESL owns more than 46.1 million shares of Sears Canada, giving it a 45.3 per cent stake in the retail chain.

Fairholme owns about 20.8 per cent of Sears Canada.

Sears plans to close 59 stores across the country, and has said it is cutting 2,900 jobs.

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