Kmart to buy out Sears for $11bn

Kmart Holding Corp, the retailer controlled by billionaire Edward Lampert, agreed to buy Sears, Roebuck & Co for $11 billion to create the third-biggest US retailer. Shares of both companies soared.

Sears investors will receive $50 in cash or 0.5 share of the new company, which will be called Sears Holdings Corp.