Shares of Saks Inc. (SKS) Increase after Buyout Rumors

August 31, 2010, 9:47 AM

Saks Inc. (NYSE: SKS) shares were up 34% on Tuesday after a British newspaper U.K.’s Daily Mail said the company could soon get a buyout offer of $1.7 billion.

The Daily Mail, reported on Tuesday that a private-equity consortium has been pursuing the acquisition of Saks for months and is near completion of its due diligence and is preparing its offer to Saks for $11 per share, or $1.7 Billion.

On Monday, Shares of Saks Inc. had reached a six-month low, the shares jumped 24% after the news was released.

The rumors come as Saks., the luxury retailer, has seen results improve on increased demand for higher end products. Saks stated early in the month that its second-quarter loss decreased from rebounding sales and rising margins.

Spokeswoman for Saks said the company doesn’t comment on rumors or speculation.

Shares of Saks were up $1.72, or 26 percent, to $8.32.

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Tags: NYSE, saks inc, sks