Saks Shares Soar on Takeover Rumors
The Daily Mail further said, "Due diligence is said to be almost complete and a cash bid of $1.7 billion (£1.1billion), or $11 a share, could be tabled soon" -- that's a 66.6% premium over Saks shares Monday's close of $6.60. On Wednesday morning, shares were trading at around $7.70 a share.
The Saks Fifth Avenue store operator recently posted a much narrower second-quarter loss than analysts estimated as demand for luxury goods increased and the company discounted less items.
Private equity investors are on the prowl for appropriate big and small acquisitions in the coming months, according to the Daily Mail, as there's more than £150 billion ($231 billion) of private equity cash lying around.