Toys R Us to Weigh Offers

Toys R Us Inc. was expected Wednesday to weigh takeover offers from two investment groups and may soon decide whether to sell its struggling toy store chain and Babies R Us unit, sources familiar with the situation said.

A decision by the retailer’s board is expected by the end of the week, sources said. The company, however, could ask bidders to revise their offers again and negotiations could linger.

Each offer is worth about $5.7 billion, the sources said.

Buyout firm Kohlberg Kravis Roberts & Co. and real estate firm Vornado Realty Trust have teamed up on a bid for the entire company, sources said. Private equity firm Bain Capital also had joined the group on a joint bid, one source added.

Bain could not be reached for comment. KKR, Toys R Us and Vornado declined to comment.

Last year, Toys R Us put its toy business up for sale and planned to focus on its faster-growing Babies R Us stores.

The second bidding group is led by Cerberus Capital, sources said. Cerberus had been bidding in earlier rounds with Goldman Sachs Group Inc. and real-estate investment trust Kimco Realty Corp., sources said, but it was unclear whether those firms were involved with the latest round of bidding.

Goldman and Kimco could not be immediately reached for comment. Cerberus said it didn’t comment on market rumors.

Toys R Us has not yet decided whether it will sell the entire company, one source said.

Toys R Us gained 68 cents to $24.77 on the New York Stock Exchange.