Diego Della Valle Buys 5.9 Percent of Saks Fifth Avenue
Diego Della Valle has increased
his stake in Saks Fifth Avenue. The Tod's SpA chairman and CEO now owns 5.9% of the common shares of Saks Inc. The disclosure comes as a surprise because no one knew how much stock Diego Della Valle owned. This new purchase now puts Della Valle as the next biggest shareholder in Saks after billionaire Carlos Slim.
Della Valle made the purchases through his investment vehicle Diego Della Valle & C. S.A.P.A., and the last of them, on May 7, was executed just as he reduced his stake in Tod's to 64.8 percent. The SEC filing reported the stock buys since April 28 were made through "authorized brokers," but it isn't known whether Della Valle took on any of the shares shed on March 10, when 13.8 million shares of Saks common stock were sold for $1.50 each.
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Della Valle's acquisitions of Saks shares prior to April weren't registered with the SEC because his stake was under 5 percent, the threshold at which ownership positions are required to be reported. But Friday's disclosure places him squarely in the center of major shareholders in the retailing firm, behind only Slim and a number of institutional investors.
It also puts him in the unusual position of being a vendor-owner as Tod's is a supplier of women's shoes and handbags, men's shoes and children's shoes to Saks. Tod's SpA owns the Tod's, Hogan, Fay and Roger Vivier brands, and Della Valle also has invested in the Vionnet fashion house. Last week, Tod's reported that its first-quarter operating profits were up 1.8 percent, to 37.9 million euros, or $49.6 million at average exchange, as revenues increased 5.4 percent to 201.3 million euros, or $263.3 million.
Della Valle is one of Italy's leading businessmen. He has investments in many companies, including RCS Media Group, Banca Nazionale del Lavoro,
furniture producer Poltrona Frau, film studio Cinecitta and many others.
And now he apparently wants to battle Carlos Slim for control of Saks Fifth Avenue.
