Saks Inc shares rise due to new takeover offer

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Barry Sternlicht, CEO of Starwood Capital Group LLC, announced that they has made an offer for Saks Inc. The real estate investment firm offered US$17 to US$18 per share for the luxury department store shares. The move by Barry Sternlicht boosted Saks shares by at least 8%. Based on the terms of the offer, Saks CEO Steve Sadove will maintain his role for the luxury department store chain. The move will give Sadove the chance to collect a change-of -control payment estimated to worth US$20 million upwards.

The Barry Sternlicht offer comes in addition to the previous offers made by Hudson's Bay Co, the Canadian retailer and the potential offer made by the Qatar's Middle Eastern sovereign wealth fund. The offered US$17 to US$18 per share equals the Hudson bay offer, though sources are saying the initial bid started at US$15 to US$16 per share.

The New York based luxury department store chain appointed Goldman Sachs Group to manage the sale.

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