Bermuda-based Pangea Holdings Ltd. will pay $53.4 million for Spiegel Inc.?s catalogue business, Bloomberg News reported.

Pangea, which earlier this month bought Spiegel unit Newport News, will pay $2 million in cash, honour an estimated $22 million in orders Spiegel made, and take on $29.4 million of debt, according to papers filed with the US bankruptcy court in New York.

Bermuda-based Spiegel Catalog International Ltd., a wholly owned subsidiary of Pangea, was set up to buy the 99-year-old catalogue, whose sales fell to $265 million last year from $522 million in 2002.

?It?s pretty sad,? said Eric M. Beder, an analyst with JB Hanauer & Co. who doesn?t own shares. ?Spiegel was one of the great brand names that just got very tarnished. The fact that they got so little for the catalogue is very depressing.?

Spiegel got into financial trouble by issuing credit to consumers with poor credit histories, Mr. Beder said.

Downer?s Grove, Illinois-based Spiegel has been marketing its three divisions to raise money to repay creditors owed roughly $1.5 billion since the company filed for bankruptcy in March 2003.

Pangea got approval last week to buy Spiegel?s Newport News women?s apparel unit for $28.6 million. Spiegel is in talks with prospective purchasers for its Eddie Bauer clothing chain, the largest of the three main units.

Under the terms of the agreement, which requires court approval, Pangea will own the rights to the catalogue and the Spiegel.com website, Bloomberg reported.

Spiegel will hold an auction on June 15 to try to get a better deal for the catalogue, as required by the bankruptcy court in most asset sales.

Pangea will be allowed to increase its bid at the auction.

The catalogue generated ?very little interest due to the business?s lack of distribution operations and information services operations? and is ?significantly cash flow negative? Spiegel said in court papers.