PRICE AIN’T RIGHT

Saks owner tightfisted in bid for Macy’s chain

Hopes for a deal to sell Macy’s are fading as the department store giant refuses to take a discount, sources told The Post.

Hudson’s Bay, the owner of Saks Fifth Avenue and Lord & Taylor, is the only bidder that has stepped forward so far, and is put off by the “high price” Macy’s is asking for its 829 stores, said a source close to the situation.

The companies have been in talks on and off for 90 days, the source said.

One explanation for the impasse, insiders say, is that some of the pressure on Macy’s to consider a sale has diminished in recent weeks.

That’s partly because activist hedge fund Starboard Value is no longer interested in waging a proxy battle and has instead been reducing its stake in Macy’s, according to sources close to the firm.

Indeed, several weeks ago Starboard made a last-ditch effort to find other potential bidders for the chain and came up empty, a source close to the situation said.

Although Starboard is still monitoring the situation, it has limited interest in investing more time and money in what has been a losing investment, the source said.

Macy’s declined to comment as did officials at HBC and Starboard.

Earlier this year, Starboard’s founder and chief executive, Jeff Smith, was angling for seats on Macy’s board and was said to be considering a proxy fight.

Fed up with Macy’s weak performance — sales declined 4 percent to $8.8 billion in the fourth quarter and its stock is down about 30 percent over the past year — Smith was making a run for seats in advance of Macy’s annual meeting in late April or May.

But on the heels of a rough holiday quarter, “Smith is less interested in Macy’s and Macy’s is under less pressure as a result,” said a source familiar with the situation.

If Macy’s and HBC reach a deal it will likely involve mall operator Simon Property, with which HBC is a partner, to form the joint venture HBS Global Properties. The investment vehicle owns real estate in the US and Germany, where HBC bought the department store Galeria Kaufhof last year.

Longtime Macy’s CEO Terry Lundgren is stepping down this month and is slated to hand the reins to President Jeffrey Gennette.

“It wasn’t the year we expected or hoped for,” Lundgren said this month during his last earnings call. “We thought we could do better than that.”

Reuters reported on Friday that there are no “current negotiations” between the companies because Macy’s does not believe HBC can raise the financing it needs.

One source close to the negotiations disputed the report.

“There are multiple ways HBC can finance the deal,” the source said. “The issue is that Macy’s is holding out for a much higher price. No doors have closed.”

Macy’s shares on Friday closed at $31.76, down 4.4 percent.