NEW YORK ( TheStreet) - Canada's Hudson Bay Company, which announced on Monday that it is buying Saks Inc. (SKS) for $2.4 billion, has indicated that it will spin off the real estate holdings of the combined company into a real estate investment trust. The question is whether that move would be good for the company or for investors.A REIT conversion would be good for Hudson Bay's balance sheet. If the Saks' deal with Hudson Bay closes, the combined company would be taking on considerable debt. The best way for Hudson Bay to reduce the debt is to monetize its real estate portfolio.
Does a Hudson Bay/Saks REIT Make Sense?
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