The shares of department store chain Dillard’s soared more than 7% Friday,
prompting rumors of a sale,
according
to The New York Post. However, based on the family's long-standing
involvement with day-to-day operations, The Post suggests a deal with a
private equity firm may be more likely than one with a strategic bidder. A
hostile bid is out of the question because the Dillard family owns 100% of the
class B voting shares, giving members the right to elect 9 directors to the
12-member board. However, the Post is overlooking a third possibility: a sale
to a REIT. Maybe not an outright sale to a REIT, but a sale of its lucrative
real estate. After all, Dillard's owns 241 of its 328 stores as well as six of
its eight distribution centers, a tasty treat for any hungry property
investor. —Matthew Wurtzel
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