Stewart Enterprises evaluating alternatives

By Associated Press
July 23, 2008 | Comments (0)

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Funeral services company Stewart Enterprises Inc. said Wednesday its board has approved the formation of a committee to evaluate alternatives to boost shareholder value.

The board met to consider a letter from rival Service Corporation International, which said its recent $881.7 million, or $9.50 per share, takeover offer was rejected by the company.

Stewart did not disclose the contents of the letter dated July 21.

In a June 25 letter, Service Corp. said access to nonpublic information to better assess the company's value may have boosted the offer to between $10.25 and $11.25 per share.

Stewart Enterprises has been authorized to hire a financial adviser as deemed appropriate by the committee.

Shares of Stewart Enterprises rose 60 cents, or 7 percent, to $9.24 in morning trading, touching a nine-year high of $9.46 earlier in the session. The stock has traded between $5.36 and $9.13 in the past year.

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