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Goldman Sachs to make bid for Karstadt

DDP/DPA/The Local · 23 May 2010, 12:54

Published: 23 May 2010 12:54 GMT+02:00

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Goldman Sachs is majority shareholder of the Highstreet property consortium, reported the weekly Bild am Sonntag newspaper at the weekend.

Highstreet owns the properties in which 86 of the 120 Karstadt stores are housed, but has not until now shown interest in running the shops themselves.

But Bild am Sonntag said Highstreet would make an offer to Karstadt insolvency administrator Klaus Hubert Görg this week – just days ahead of the Friday deadline for bids.

Highstreet would reportedly be the favourite bidder, and has already held secret talks with the Verdi trade union which represents shop-workers.

There would be no extensive job cuts should the deal come off, the paper reports, although the working week would be extended from 37.5 to 39.5 hours with no extra pay.

Story continues below…

The giant Metro group, which owns Media Markt, Saturn and Galeria Kaufhof, is still in the running to buy out Karstadt, with CEO Eckhard Cordes recently writing to Görg to signal his continued interest.

The Metro concept would not guarantee to keep all the Karstadt shops running, rather incorporating them into its current department store chain.

DDP/DPA/The Local (news@thelocal.de)

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Your comments about this article

09:28 May 24, 2010 by selvan
Good development, hopefully no major staff reductions. Wish the banks were treated same, they would have eventually found a buyer at the right price and not with a bail out. Even with these bail-outs, financial uncertainity of banks exist.
20:40 May 24, 2010 by Prufrock2010
I've always preferred Karstadt over Kaufhof, even though for the most part they carry identical merchandise at identical prices. I always found Karstadt employees to be more friendly than their Kaufhof counterparts, on the whole. But if Goldman Sachs acquires Karstadt, I will never shop there again.
12:31 May 25, 2010 by pepsionice
I don't think Goldman Sachs has understood the typical German's attitude about Goldman Sachs. Out of every ten customers that Karstadt had....I would imagine that five will not shop under a Goldman Sachs operation.

My guess is that there is a middle party involved and they've convinced the US banker that this is all ok and Germans have no problem with their operation. If they do buy Karstadt.....and the profits go down the tube....Goldman Sachs loses alot of their investment in this deal.

Hint: with the exchange improving for American companies....go and watch more US banks to walk in and buy German companies.
19:54 May 25, 2010 by William Thirteen
GS will turn around and sell suspect CDOs on Kartstadt debt while also buying heavy CDSs against a Karstadt failure while also finagling some weird lease buyback shizzle on all capital assets guaranteeing that anyone that gets within 500 meters of a Karstadt will lose their retirements funds while GS makes untraceable bank! Then somehow Karstadt will end up being the 28th member of the EU....
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