SRSCQ Sears Canada Inc (CE)

Sears Canada Inc.'s (SCC.T) top executive found himself on the defensive Friday as dissatisfied shareholders questioned the company's non-use of its hefty cash positions.

The debate took place at Sears Canada's annual meeting, just hours after parent Sears Holdings Corp. (SHLD) said it raised its stake in Sears Canada to about 90% by agreeing to pay C$560 million to buy shares from U.S. hedge fund Pershing Square Capital Management L.P. at C$30 a share.

At the meeting, President and Chief Executive Dene Rogers said Sears Canada has had good reason to hold on to its net cash of about C$1 billion, noting that others in the industry have similar cash/debt ratios and that it's needed for general operating purposes. But that didn't satisfy some shareholders in attendance who feel that Sears Canada is able to start returning cash to shareholders again.

-By Andy Georgiades; Dow Jones Newswires; 416-306-2031; andy.georgiades@dowjones.com