Posted on: Saturday, April 30, 2005

Neiman Marcus gets three sale bids

By Brett Cole and Cotten Timberlake
Bloomberg News Service

NEW YORK — Neiman Marcus Group Inc., which put itself up for sale last month, received bids from three buyout groups by yesterday's noon deadline, people familiar with matter said.

Neiman Marcus received offers from: Blackstone Group LP and Thomas H. Lee Partners LP; Kohlberg Kravis Roberts & Co. and Bain Capital LLC; and Texas Pacific Group and Warburg Pincus LLC, people involved with all of the groups said. The board of Dallas-based Neiman Marcus will meet over the weekend to consider the offers, they said.

The acquisition of Neiman Marcus, which is outperforming most retailers, would expand the trend of private equity firms paying premiums for retailers. Analysts valued the company, which operates 37 stores including two Bergdorf Goodman locations in New York, at about $100 a share, or $5 billion.

Neiman Marcus spokeswoman Ginger Reeder didn't respond to requests for comment.

Spokesmen for the three groups that submitted bids for Neiman Marcus all declined comment.

Shares of Neiman Marcus rose 12 cents to $98.32 at 4:34 p.m. in New York Stock Exchange composite trading yesterday. The stock has jumped 23 percent since March 15, the day before Neiman announced it had hired Goldman Sachs Group Inc. as a financial advisor to explore strategic alternatives, including the sale of the company.

It also hired JPMorgan Chase & Co. as an advisor, a person familiar with the matter said.

Neiman Marcus' sole Hawai'i store is in Ala Moana Center.