Saks (SKS) Shares Spike On Possible $1.7 billion PE Bid

Shares of Saks Inc. (SKS), which owns Saks Fifth Avenue, surged 34 percent to $8.85, the most intraday since April 2009, following a report that a private equity bid is in the works for the luxury retailer.

The U.K.’s Daily Mail, citing unnamed sources, reported today that a group of American and British private-equity houses have been looking at Saks for months and have almost completed their due diligence, which may soon lead to an offer for $11 a share, or $1.7 billion for the most prestigious US retailing chains.

Still, the paper said that a possible stumbling block for any bidder is Mexican billionaire Carlos Slim and Italian luxury label Tod’s investor Diego Della Valle, who together own a “significant” stake in Saks and could demand top dollar for their shares.

Shares of Saks were up $1.50, or 22.65%, to $8.10 at 2:14pm ET on Tuesday. SKS shares have traded between $5.37 and $10.65 over the last 52 weeks.

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About Ari Haruni 270 Articles
Ari Haruni is the Co-Founder & CEO of Wall Street Pit.

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