An article in the U.K.’s Daily Mail says, citing “rumours,” that a group of private equity firms are aiming to buy Saks Incorporated. The Mail pegs the purchase price, which it says could be made public soon, at $1.7 billion, or $11 a share.
The purveyor of Gucci handbags and other fashionable wears has lately seen its prospects improve. For its first fiscal quarter ended in May, the company swung to a profit of $18.8 million from a year-ago loss of $5.1 million.
Nevertheless, the Mail said that a buyout offer may face opposition from some of the company’s significant shareholders. ”A possible stumbling block for any bidder is the fact that billionaires Carlos Slim and Tod’s Spa investor Diego Della Valle between them hold a big chunk of the equity. They will want top dollar for their shares.”
Shares of Saks were lately up 23% at $8.10 in midafternoon trading.