Service Corp. pulls offer for Stewart Enterprises at $11 per share

By Susanna Moon

Chicago, Oct. 7 - Service Corp. International said it withdrew its proposal to acquire Stewart Enterprises, Inc. for $11.00 per share.

Stewart's three preconditions to negotiate a deal are unacceptable, according to a letter to Stewart from Service Corp. attached to a press release. The company said it also filed the letter in a form 8-K with the Securities and Exchange Commission.

The company told Stewart in the letter that it cannot agree to accept all financing risk, regulatory risk on antitrust clearance and increase its $11.00-per-share proposal.

Service Corp. increased its offer to purchase the company on July 22 to $11.00 per share. Service Corp. said on July 14 it would honor Stewart's decision to reject the $9.50-per-share offer made on June 25.

Stewart, in rejecting the initial offer, said it was not in the best interest of shareholders and called the proposal "inadequate."

Service Corp. International and Stewart Enterprises both provide funeral and cemetery products and services. Stewart is located in Jefferson, La., and Service Corp. is based in Houston.

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