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BENTONVILLE, Ark. (AP) -- Wal-Mart Stores Inc. is offering to buy South African retailer Massmart Holdings Ltd. for approximately $4.25 billion.A deal would give the world's largest retailer an opening to expand in Africa, a fast-growing region."South Africa possesses attractive market dynamics, favorable demographic trends and a growing economy," Executive Vice President Andy Bond said in a statement.Wal-Mart said it would pay 148 rands ($21.11) per share for Massmart, which has 201.5 million shares outstanding according to Thomson Reuters. Further details of the proposed deal were not disclosed.Shares of Massmart surged above Wal-Mart's offer to 149.01 rands ($21.29), or 10.6 percent, in midday trading Monday. That's an indication that shareholders are expecting a higher offer, either from Wal-Mart or another bidder.Massmart said in a statement that its board will provide a recommendation to shareholders once a firm offer is made. The two companies have entered into an exclusivity period to allow for due diligence and other pre-conditions to a deal.The proposed transaction would further strengthen Wal-Mart's overseas business, which makes up about 25 percent of its...more
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