Goldman Stiffs Saks
Goldman Stiffs Saks. Maybe you've visited Saks Fifth Avenue's flagship department store in New York City. So large it commands its own zip code, Saks is the most famous of all the venerable shopping destinations in the Big Apple. Last year, the company sold itself to Canadian Retailer Hudson's Bay for US$2.9bn. On Monday, only a year later, Hudson's Bay commissioned an appraisal of the real estate under Saks's flagship Manhattan store that pegged its value at US$3.7bn. Goldman Sachs earns most of our ire. The investment bank provided Saks with a written fairness opinion advising that the sale price was fair. But here's the real nugget: Goldman is exactly the same bank that provided the updated US$3.7bn valuation of the flagship store location. Just one year after they told shareholders US$2.9bn was a fair price for the whole business, the Manhattan land alone is worth more than that. (VIEW LINK)
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