Neiman Marcus Said to Be Near $6B Sale

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Sept. 9 (Bloomberg) -- Neiman Marcus, the luxury retailer that filed for an initial public offering in June, is close to an agreement to sell itself to Ares Management LLC and the Canada Pension Plan Investment Board for $6 billion, two people with knowledge of the matter said. Erik Schatzker reports on Bloomberg Television's "In The Loop." (Source: Bloomberg)

Possible deal?

An auction was held last wednesday.

It was won by ares management and the canada pension plan investment board.

They now have an exclusive window to finalize a deal.

Canada pension plan investment board is the equivalent of u.s. social security, but in invest in stocks and acts as a principal in private he equity deals.

-- in private equity deal.

Ares management has three retail franchises already.

99 cents only stores, which it bought with the canada pension plan investment board.

Floor and the core -- and decor.

And smart & final.

We are talking about 41 stores, including the iconic stores at 58th and 5th avenue in manhattan.

As you probably know, we have seen a lot of activity in retail and the day lately.

-- retail m&a lately.

We stock -- saw the diamond retailer sold to swatch.

There was also the deal for rue21. and officemax bought by office depot.

A lot of deals.

Didn't lehman filed to go public in june?

-- didn't lehman neiman file to go public in june?

Dmean -- demand for luxury goods has been slowing of late.

Three companies have been emblematic of the trend, tiffany's, nordstrom, and coach.

What is happening is, almost paradoxically, as confidence returns to the consumer, the consumer is stepping beyond lecturing good than buying big- ticket items like houses and cars -- eon flux or he -- beyond luxury goods and buying big- ticket items like houses and cars.

It is never easy to negotiate with resellers at the same time.

There are a number of things that still have to be sorted out for this deal to get finalized, including internet rights, real estate, and they want to keep management.

The ceo has been there for several years.

She is very well paid, earned $10 million last year.

For a retailer of neiman marcus' size, that's a lot of money.

Macy is four times that size and their ceo only made $4 million more.

The ipo option is always in the back pocket.

Thank you, erik schatzker, our "market makers" anchor.

The next time you step into an olive garden, you will see something new next to the never ending pasta bowl and breadsticks.

Smaller portions.

This text has been automatically generated. It may not be 100% accurate.


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