(image source: the new york times) by john o'connor hudson's bay, the canadian parent companyof lord and taylor, says it's buying luxury retailer saks in a $2.4 billion cash deal.(via cnbc)â "that deal will be for $16 a share, and providesfor a 40-day 'go-shop' period in which saks
Saks Fifth Avenue Credit Card, can go seek out other potential buyers." according to the new york times' dealbook,hudson's bay — the oldest company in north america — plans to finance the all-cashdeal by ... â " ... issuing about $1 billion of new stockand $400 million of new bonds, borrowing about
$1.8 billion of new loans as well as usingavailable cash on hand." nbc news explains following the merger thecombined company "will operate 320 stores" including "179 full-line department stores""72 outlet stores" and "69 home stores" in prime retail locations throughout the u.s.and canada. â an analyst for msnbc says the merger seems to be more of a back-office deal, but explainsthere could be some benefits for shoppers if hudson's bay decides to combine the lordand taylor and saks brands. "there might be some impact for those goingshopping because the bigger stores, macy's for example, have more bargaining power withtheir suppliers and perhaps can push down
prices some because they've got greater economiesof scale." but an analyst for bloomberg argues the brandsare too different to combine, and that hudson's bay would be best-off leaving them independentof one another. "when we are talking about synergies here,we are talking most likely about back-office synergies we're talking about. we aren't necessarilytalking about combining the stores or combining the cultures." sak's stock jumped up nearly 5 percent mondayafter the deal was announced.
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