Aug 31, 2010
Saks shares up after report of buyout bid
Aug 31, 2010
(Reuters) - Saks Inc (SKS.N) shares rose nearly 30 percent in premarket trading on Tuesday after a news report suggested a group of private equity firms may bid for the New York-based luxury department store operator.
Saks, Fifth Avenue
The Daily Mail, a British newspaper, said that a consortium of U.S. and British firms could make a cash offer of $11 per share, or $1.7 billion in all, but did not cite sources. That offer would represent a 67 percent premium over Monday's closing price of $6.60.
A spokeswoman for Saks did not immediately return messages seeking comment.
Shares were trading at $8.55 in premarket trading. Shares have fallen by about 38 percent since hitting a yearly high of $10.65 in April 26.
After stumbling during the economic slowdown as consumers cut back on luxury items, Saks' sales have since rebounded.
Last week, Saks reported better-than-expected quarterly results as it was able to sell more items at their full price.
Sales in July at its stores open at least a year rose 6.4 percent, beating Wall Street estimates.
Saks' largest shareholders include Mexican billionaire Carlos Slim, with a 15.9 percent stake, and Italian businessman Diego Della Valle, who nearly doubled his stake in Saks in a matter of a few days in March to 9.3 percent.
(Reporting by Phil Wahba; Editing by Derek Caney)
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