Baugur to bid for Saks

Icelandic retail investor Baugur has said it may make a joint bid for luxury US department store chain Saks. Baugur, which owns the UK's House of Fraser, said it could join with Dubai-owned retailer Landmark Group to make a formal takeover approach. The Icelandic firm said it now intended to hold discussions with Saks' board and senior managers. Shares in Saks rose almost 9% in after-hours Monday trading in New York. The company has yet to comment.

Takeover speculation surrounding Saks first emerged in the media two weeks ago, and shares in the firm have risen almost 14% since the start of October. Saks has 54 Saks Fifth Avenue stores, 49 Saks Off 5th outlets, 62 Club Libby Lu shops, and an online operation. Landmark, which is already a Saks shareholder, has a chain of supermarkets in India.