(Reuters) - Footwear retailer Brown Shoe Co (BWS.N) acquired the remaining 50 percent interest in womens shoe-maker Edelman Shoe Inc for for $39.6 million in cash and stock.

Famous Footwear from Brown Shoe Co Inc - Photo: www.brownshoe.com

Shares of Brown Shoe rose as much as 7 percent before paring some gains to trade up 5 percent at $15.73 Monday (7 June) morning on the New York Stock Exchange.

Brown Shoe first invested in Edelman -- which makes shoes under the Sam Edelman and Libby Edelman brands -- in 2007 when it bought a 42.5 percent stake in the company. It then bought a further 7.5 percent of Edelman, taking its stake to 50 percent in 2008.

Edelman Shoe founders Sam and Libby Edelman will retain their current roles as president of the Sam Edelman division and head of marketing, respectively, Brown Shoe said in a statement. (Reporting by Abhishek Takle in Bangalore; Editing by Jarshad Kakkrakandy)