Reuters The company is seeking $2 billion to cover the $9.8 billion cost of a planned merger with rival Lowe’s Inc, including $600 million to $2 million to buy the rival’s consumer products division, according to people familiar with the matter.
The deal would combine Lowe’s with the consumer products arm of Lowe’s, which makes everything from clothing to appliances to furniture.
The company’s stock has dropped about 11 percent since the announcement last month.
Lowes said in March it would combine its consumer products and lifestyle brands to create an umbrella group called Lowe’s Home & Life, which would have a stake in Lowe’s consumer goods division.
It said the combined entity would be in a position to expand its consumer goods business and drive incremental revenue growth.
Lowe’s shares have declined about 20 percent in the last year, while Lowe’s shares fell nearly 2 percent on the announcement.
Lowy’s has struggled to keep pace with the popularity of its products, and the company has struggled in recent quarters to sell higher-priced products like home decor and electronics.
Its shares fell 2.5 percent in morning trading.