Eddie Lampert's Hedge Fund Says It May Sell Some Or All Its Sears Canada Shares

ESL Partners LP, the hedge fund run by Sears Chief Executive and main shareholder Eddie Lampert, said Friday that it and Fairholme Capital Management LLC have terminated their joint hiring of Canadian legal counsel regarding a potential negotiated deal with Sears Canada Inc, which is currently restructuring in bankruptcy. ESL is still reviewing Sears Canada and its operations and may consider potential transactions, the hedge fund said in a statement. "ESL is also evaluating and considering a potential sale of some or all of its common shares of the Issuer (Sears Canada) in order to generate a tax loss for ESL and their investors," said the statement. ESL owns 46 million shares of the company, equal to a stake of 45.3%.