The Baugur Group, an investment firm from Iceland, is considering making a joint bid for Saks Inc., according to an SEC filing made late Monday. Saks shares gained 9.2% to $21.60 in AH trading on the news. Baugur has had initial discussions with Indian retail billionaire Micky Jagtiani's Milestone Resources Group (also known as the Landmark Group of Dubai) about constructing a proposal. Baugur, which is run by Icelandic businessman Jo'n A'sgeir Jo'hannesson, owns British retailers House of Fraser and Karen Millen and has expressed interest in establishing a foothold in American retail. Baugur holds an 8.5% stake in Saks, and an investment group led by Jagtiani holds 1.2%. Mexican billionaire Carlos Slim holds 9% of the company. Shares of the company have risen more than 25% since September, when it was disclosed that Baugur had bulked up its stake. Earlier this month, the Times of London reported that Baugur was mulling a $3 billion offer for Saks. Saks has 54 stores in the U.S. including its flagship Fifth Avenue store in New York.
Commentary: Saks Q2 Loss Narrows, But Worse Than Expected, Sales Up 15% • Retail's Dismal Performance a Reason to Short on Any Bounce • Saks: The Revival is Worth Watching
Stocks to watch: SKS. ETFs: XLY, PEZ, VCR
Earnings call transcript: Saks Q2 2007