This excerpt taken from the SKS 8-K filed Dec 9, 2005.
MILLION SHARE REPURCHASE AUTHORIZATION
Birmingham, Alabama (December 8, 2005)Saks Incorporated (NYSE: SKS) (Saks or the Company) today announced that its Board of Directors has authorized a 35 million share increase in its common stock share repurchase program.
To date during the fiscal fourth quarter, the Company has repurchased 8.0 million shares for approximately $140.8 million, leaving approximately 7.7 million shares remaining under its existing 35 million share repurchase authorization.
As previously announced, the Company has agreed to sell its Northern Department Store Group (NDSG) to The Bon-Ton Stores, Inc. for $1.185 billion in a transaction the Company expects will close early in the first fiscal quarter of 2006. Closing of the transaction is subject to conditions, including Bon-Tons financing for the transaction, the expiration or termination of all waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act, and various other customary conditions. The Company anticipates distributing a substantial portion of the net proceeds from the transaction to its shareholders, which could include share repurchases, a special cash dividend, or a combination of the two.
In anticipation of the closing of the NDSG transaction, the Companys Board of Directors has approved a 35 million share increase in its common share repurchase program, bringing the total available for repurchase to approximately 42.7 million shares. Shares may be purchased in open-market, negotiated, and other transactions as may be available. Implementation of the increased buyback program will depend on market conditions, the Companys other cash requirements, and other factors.
Saks Incorporated operates its Saks Department Store Group (SDSG) with 40 Parisian stores; 142 Younkers, Herbergers, Carson Pirie Scott, Bergners, and Boston Store stores (collectively known as the Northern Department Store Group or NDSG); and 58 Club Libby Lu specialty stores. Saks Incorporated also operates Saks Fifth Avenue Enterprises (SFAE), which consists of 55 Saks Fifth Avenue stores, 50 Saks Off 5th stores, and saks.com.