Baugur could bid for Saks after the holidays-WSJ
NEW YORK, Dec 23 (Reuters) - Iceland's Baugur Group could bid for U.S. luxury retailer Saks Inc (SKS.N) as early as after the holidays, the Wall Street Journal reported, citing people familiar with the matter.
Baugur hired investment bankers at Financo in New York, and is likely to wait until after the holiday season, and possibly the end of Saks' fiscal fourth quarter in February, to make a bid, the newspaper reported on Saturday.
The owner of Britain's House of Fraser would likely offer no more than $23 a share for Saks, the paper said, citing a person familiar with the matter. Saks' shares closed on Friday at $21.65 on the New York Stock Exchange.
Baugur's chief executive Jon Asgeir Johannesson said in an interview with the Journal that the investment group is still interested in Saks, despite the dicey U.S. economy, because consumption levels would still be high even if they fell 10 to 15 percent.
Saks has good performance and a strong brand, Johannesson said in the Wall Street Journal piece. Baugur Group owns close to 9 percent of Saks.
Baugur said in an October filing that it may make a joint bid for Saks with Dubai-based Landmark Group.
Financing a deal could be difficult, but Baugur could sell some of Saks' real estate holdings, valued at $800 million to $1.5 billion, to pay down debt immediately, the Wall Street Journal said, citing JPMorgan credit analysts. (Reporting by Dan Wilchins)
