Saks Inc. (NYSE:SKS) stock is soaring after news broke that the Saks Fifth Avenue-owner hired Goldman Sachs Group Inc. (NYSE:GS) to explore a possible sale of the company.
The New York Post reported Tuesday afternoon that the luxury chain, whose flagship store in Manhattan is valued at more than $1 billion, hired Goldman in the last few weeks. By the closing bell, shares in Saks were up more than 11 percent to $13.67, and in after-hours trading, the price had hit $16.26, up 19 percent, by 7:30 p.m. EDT.
KKR and Leonard Green & Partners were reported to be among the likely bidders, along with other large private equity firms.
Earlier on Tuesday, Saks posted a first-quarter net income of $20 million, down from $32.1 million in the same period last year.
Rahul Sharma, a London-based founder of Neev Capital, said the surge may signal an easing in credit.
If Saks deal happens, we've come full circle vs failed bid before the crisis. Signals confidence in high end and easing in credit $SKS
â€” Rahul Sharma (@Retail_Guru) May 21, 2013
Alexander C. Kaufman is a reporter at the International Business Times covering companies, retail and media. He joined in May 2013. Previously, he was an editor of...