UPDATE 1-Baugur unlikely to pursue Saks bid in '08-NY Post
(Recasts lede, changes dateline, adds Saks/Baugur comment, share move)
NEW YORK, Sept 5 (Reuters) - Shares in upscale retailer Saks Inc (SKS.N) fell 6 percent on Friday following reports that Icelandic investor Baugur Group was unlikely to pursue a bid this year.
A Saks spokesperson told Reuters the company had no comment on the speculation.
Jon Asgeir Johannesson, chairman of Baugur Group, said in August he was "actively" interested in Saks, and he had the cash to bid for it, but a source told the New York Post that tight credit markets and a poor economic outlook made financing all but impossible at current prices.
Baugur, which owns Britain's House of Fraser department stores, said last year in a regulatory filing it intended to hold discussions with Saks's board about a possible acquisition.
But in April, the company said it was content with its roughly 8 percent stake and would not pursue a takeover.
Baugur did not immediately respond to a request for comment.
Shares of Saks were down 66 cents at $10.61 in mid-morning trade on the New York Stock Exchange. (Reporting by Sarah Coffey in New York Sweta Singh in Bangalore, editing by Will Waterman/Jeffrey Benkoe)
