Press release from PR Newswire
Acquisition of Saks Incorporated by Hudson's Bay Company May Not Be in the Best Interests of Saks Shareholders
Monday, July 29, 2013
Acquisition of Saks Incorporated by Hudson's Bay Company May Not Be in the Best Interests of Saks Shareholders21:00 EDT Monday, July 29, 2013
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.
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.
Saks shareholders have the option to file a class action lawsuit to secure the best possible price for shareholders and the disclosure of material information to shareholders. Saks shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, firstname.lastname@example.org, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsarroyo.com.
Press release link: http://www.robbinsarroyo.com/shareholders-rights-blog/saks-incorporated/
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Contact:Darnell R. DonahueRobbins Arroyo LLPddonahue@robbinsarroyo.com(619) 525-3990 or Toll Free (800) 350-6003www.robbinsarroyo.com
SOURCE Robbins Arroyo LLP