Saks moves to avert unwanted takeover bid
27 Nov 2008
Luxury retailer Saks Inc has announced new measures to protect shareholders' interests, in an attempt to thwart an unwanted takeover.
The move seeks to impose substantial penalty on any person or group that acquires 20 per cent or more of the company's outstanding common stock without prior approal of the board of directors.
The luxury retailer is facing an unwanted takeover threat from Mexican billionaire investor Carlos Slim Helu who reported a stake of more than 18 per cent.
Shares rose 10 per cent on Helu's disclosure. Prior to that, company shares had been hammered following the downturn in the market that saw a substantial decline in the buying appetites of its patrons.
Slim, who made a fortune in investment in telecom stocks, is now one of the world's richest men. He has been buying shares in Saks and steadily building a substantial holding in the company.
According to analysts, the Mexican tycoon has got more aggressive with his investment this time, with nearly 7.6 million shares he bought over a four-day period.
In a regulatory filing Slim reported that he has increased his family's stake to 25 million shares in Saks.
The chain was founded in New York City in 1919. It operates Saks Fifth Avenue and an outlet styled Off Fifth stores.
