The Ontario Securities Commission has put on hold a bid by Sears Holdings Corp. to complete its takeover of subsidiary Sears Canada.

In a notice released today, the OSC said the American company violated Ontario securities law by failing to disclose information related to support agreements with Scotia Capital Inc., the Bank of Nova Scotia and the Royal Bank.

Sears Holdings had negotiated side deals with two major Canadian banks to buy shares of Sears Canada in a move that valued the firm at $908 million.

Sears Holdings controls nearly 54% of Sears Canada.

The offer by Sears Holdings has been halted until its takeover bid circular is changed to disclose that votes from Scotia Capital, Scotiabank and Royal Bank won’t be counted towards the total needed for shareholder approval.

The OSC said the circular will also have to disclose information about the support agreements and the details of another side deal with Vornado Realty Ltd.