Shares in U.S.
luxury department store chain Saks Inc.
got a jolt Thursday on reports that Icelandic
investor Baugur Group hf was still interested in the company. The retailer's
shares rose as high as $10.90 before retreating to close up 5.35% at $10.44.
Overall, shares are up from a 52-week low on July 14 of $9.15, but off a 52-week high on Nov. 15
of $23.05.
Continue reading below
Bloomberg
quoted Baugur chairman Jon Asgeir Johannesson as saying he remains "actively"
interested in the company. Baugur had said in an Oct. 29 SEC filing it
could make a joint bid for Saks alongside Dubai's Landmark Group to boost its
U.S. presence. But Johannesson then retreated in April, as Women's Wear Daily
reported, saying the firm was "
quite happy" with its 8.5% stake. Bid
speculation was again renewed in June as Baugur
rolled over contracts for the
retailer's shares. Baugur, which owns British department stores House of
Fraser, completed a restructuring earlier this year into a
pure retail investor.
Meanwhile, as takeover talk persists, Saks isn't
immune to the pinch felt by retailers as even wealthy shoppers tighten
their purses. The company on Tuesday said it lost $31.7 million, or 23 cents per
share for the second quarter, up from $24.6 million or 17 cents per share for
the year-ago period. The company also predicted a flat or low single digit comparable store sales decline for the second half of 2008. - Carolyn Murphy
See Bloomberg story
See WWD story
See TheDeal.com story on Baugur's restructuring
See TheDeal.com story on Baugur weighing Saks bid
