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Talk of Iceland in Saks’ future

July 25, 2007

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Earlier this week a Securities and Exchange Commission filing revealed that BauGur, an Icelandic investment company purchased an 8 percent stake in Saks for approximately $253 million. BauGur’s “passive” investment move may be an attempt to leverage stakes and secure a distribution deal for some of the retailer’s fashion labels.

For the past few months sales at Saks have been on the rise thanks to new merchandising and marketing efforts. Saks management had stated the company’s intentions to see the turnaround plan through. However, the retailer’s brand recognition make it a likely target for a takeover.
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