Milberg LLP is currently investigating the proposed acquisition of Saks, Inc. (Saks) (NYSE: SKS) by Hudson’s Bay Company (HBC), as being potentially unfair to Saks’s public shareholders.
On July 29, 2013, Saks announced that it had agreed to be acquired by Hudson’s Bay Company in an all-cash transaction valued at an estimated $2.9 billion, including debt.
Pursuant to the merger agreement, Saks shareholders will receive $16 per share, only 4.5% over the closing price of Saks on July 26, 2013. Also, the proposed Saks acquisition consideration is inadequate compared to certain analyst target estimates which were as high as $18.50 per share as well as Saks’s recent 52-week high of $17.51 on July 19, 2013.
Hudson's Bay Company CEO Richard Baker indicated that he intends to keep Saks's management, including Chairman and CEO Steve Sadove "fully intact," and that there are no plans to merge the management teams of Hudson’s Bay and Saks. Mr. Sadove ignored favorable analyst price targets and the Saks’s own 52-week high which exceed Saks’s 52-week stock price high, attempting to cast the deal in a positive light by stating that the $16 deal price amounted to a 30% premium over the SKS closing price on the May 20, 2013, the day before media speculation began.
Milberg’s investigation primarily concerns the potential unfairness of the consideration being provided to Saks shareholders and possible conflicts of interest of Saks’s senior management.
Persons with relevant information, and Saks shareholders with questions about this investigation, are invited to fill out the form on the right, contact our Firm by calling 866.582.8140, or contacting the Milberg LLP attorneys listed below.
Kent A. BronsonMilberg LLPOne Pennsylvania Plaza, 49th Fl.New York, NY 10119-0165(212) 594-5300
Gloria Kui MelwaniMilberg LLPOne Pennsylvania Plaza, 49th Fl.New York, NY 10119-0165(212) 594-5300
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