Iceland's Baugur reportedly eyeing Saks

A consortium led by Icelandic investor Baugur is considering a $3 bn (EUR 2.1 bn) offer for US upscale department store chain Saks, UK newspaper The Times reported Friday.

Baugur, which owns the UK retailer House of Fraser, is the second largest shareholders in Saks, with an 8.8% stake. It is thought to have lined up Scottish investor Sir Tom Hunter for a potential bid, the newspaper said. Baugur chief executive Gunnar Sigurdsson and Baugur director Don McCarthy have reportedly met with Saks management and begun examining the group's portfolio.

However, Baugur isn't considered the only potential bidder for Saks, which analysts had singled out as a company ripe for a takeover offer. Others rumoured to be eyeing the company are private equity groups Cerberus Capital and Permira and French luxury goods company PPR.

Founded in 1867 by Andrew Saks, the US retailer currently has 54 Saks Fifth Avenue stores, 49 Off 5th outlets and 87 CLL specialty stores with more than 7.4 mln sq ft (687,483 m² of retail space).