The Hudson's Bay Company's (HBC) bid for Saks Fifth Avenue could fail now that a new bidder has stepped forward. Starwood Hotels owner Barry Sternlicht has submitted a bid for Saks, and his bid could beat that of HBC and another bid speculated to be from the Middle East.
Sternlicht's bid for Saks could win partly because he would keep Saks management 'as is', whereas HBC would hire new Saks management as well as possibly expand Saks into Canada. Saks' CEO Stephen Sadove wants to keep his job.
The third bidder for Saks is speculated to be a Middle Eastern sovereign wealth fund. Few details on its identity or bidding price are known.
|Barry Sternlicht [Image Source]|
A source tells the New York Post that Sternlicht has offered roughly $2.5 billion for Saks, about the same as the offer made by HBC. That works out to a Saks price-per-share of between $17 and $18.
Saks owns about two thirds of its stores, including its 650,000 square foot Fifth Avenue flagship which has been valued at over $1 billion. In total, Saks' real estate holdings are valued at over $1.5 billion.
Last month we first reported on HBC's potential purchase of Saks. We subsequently discussed possible Canadian Saks locations that could either be located within existing Hudson's Bay stores, or be free-standing. We'll keep you updated with any new developments.
Thank you to a source who wishes not to be named for forwarding us this article source from the New York Post.
[Hudson's Bay Company website]
[Saks Fifth Avenue website]