|
RAPAPORT... Saks Inc. acknowledged this morning that it had reached an agreement to settle class action lawsuits that were filed by some shareholders in an attempt to prevent the retailer's sale to Hudson's Bay Company. Several class action suits were brought against Saks in New York, which were consolidated, and two cases were filed in Tennessee. The complaints alleged that Saks' directors breached their fiduciary duties to shareholders in connection with the merger by agreeing to sell Saks for ''inadequate'' consideration and by agreeing to terms that discouraged competing bids. The complaints also challenged disclosures that Saks and its directors have made regarding the merger, as well as how Hudson’s Bay aided and abetted the directors’ breach of their fiduciary duties. On October 21, the parties came to an understanding, which would decrease the termination fee from Saks to Hudson’s Bay down to $68.5 million from $73.5 million if the deal fails to materialize and shortened the period of time that Hudson's Bay may match an alternative offer for Saks from four days to three. Saks must inform Hudson's Bay of an alternative offer within 72 hours. Saks called a special meeting of shareholders for October 30 to vote on and approve the merger with Hudson's Bay.
|