Saks on the Block?: It's the Bierut Effect

The word on the street (and in the SEC files) is that Icelandic investment fund Baugur is planning a joint bid for Saks with Dubai-based retailer Landmark Group. Baugur already controls 8.5% of shares in the American department store group, which includes 54 Saks Fifth Avenue stores, 49 Off Fifth stores, saks.com, and the specialty store chain Club Libby Lu. The financial media would have you believe that news of Baugur’s stake and the buyout gossip are driving Saks’ soaring share price (shares are up over 25% since September), but we offer another theory: it’s the Bierut effect!