Is Saks In Play? (SKS)

Posted: June 13, 2008 at 9:13 am

A report out of Citigroup this morning is sending shares of Saks Inc. (NYSE: SKS) higher this morning.  The broker reiterated its BUY rating on the stock and its $20.00 target notes that the high-end retailer may be in-play as a merger target.  Citi noted that Baugur’s filing earlier this week shows forward contracts to buy more shares.

If this sounds at all familiar, that is because this one has been a buyout rumor on many occasions in the past two years.  A year ago, this was noted by Jim Cramer positively on this chance and Dana Cohen gave this a 50/50 chance of being a $21.00 buyout.  This was also one of our recent "top US brands that could disappear" as US-owned companies because foreign buyers can take advantage of the weak dollar to buy vanity and non-key companies.

Shares are up almost 5% at $12.55 so far this morning and the 52-week trading range is $11.04 to $23.05.

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Jon C. Ogg
June 13, 2008

Read more: Analyst Calls, Mergers and Buy Outs, Retail,