This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Acquisition Of Saks Incorporated By Hudson's Bay Company May Not Be In The Best Interests Of Saks Shareholders

SAN DIEGO and NEW YORK, July 29, 2013 /PRNewswire/ --  Shareholder rights attorneys at Robbins Arroyo LLP are investigating the acquisition of Saks Incorporated (NYSE: SKS) ("Saks") by Hudson's Bay Company (TSX: HBC) ("Hudson's Bay").  On July 29, 2013, the two companies announced a definitive merger agreement under which Hudson's Bay will acquire all the outstanding shares of Saks for $16.00 per share in cash.  The transaction is expected to close before the end of the calendar year.    

(Logo:  http://photos.prnewswire.com/prnh/20130103/MM36754LOGO )

Is the Merger Best for Saks Shareholders?

Robbins Arroyo LLP's investigation focuses on whether the board of directors at Saks is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in the merger.  As an initial matter, the $16.00 merger consideration is substantially below the $18.50 target price set by an analyst at Maxim Group LLC on May 22, 2013, and below the $16.50 target price set by an analyst at UBS on the same day.  In addition, Saks traded above the offer price as recently as July 19, 2013, reaching a high of $17.51

Further, On May 21, 2013, Saks released its financial results for the first quarter 2013, in which it projected a 4% to 6% store sales growth for the remainder of 2013.  Saks also exceeded analyst earnings per share targets in each of the last nine quarters.  In relation to this positive news, Stephen I. Sadove, Chairman and Chief Executive Officer noted, "I am pleased with our first quarter comparable store sales growth of 5.9%, which was on top of a solid 4.8% increase in last year's first quarter."  He continued by noting, "[w]e are making strategic long-term investments in infrastructure and technology … that will enable us to further enhance our omni-channel capabilities…. We are positioning our Company for future revenue and earnings growth."

Given these facts, Robbins Arroyo is examining Saks' board of directors' decision to be acquired by Hudson's Bay now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.   

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,001.22 -38.27 -0.22%
S&P 500 1,988.40 -3.97 -0.20%
NASDAQ 4,538.5510 +6.4470 0.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs