By Holger Elfes May 28 (Bloomberg) — Karstadt, the insolvent German department-store chain, received three binding bids from investors before today’s deadline. The offers came from private equity company Triton, investment firm Berggruen Holdings Ltd. and the Highstreet partnership, which owns most of Karstadt’s real estate, said Thomas Schulz , spokesman for administrator Klaus Hubert Goerg , in an interview today. Goerg began talks in February with potential buyers of Karstadt , which employs 25,000 people. He may extend the deadline beyond today as the company’s creditors didn’t have enough time to study the offers before they were due to meet at 11 a.m. today in Essen, where Karstadt is based, Schulz said. Triton said in an e-mailed statement that it will immediately invest 100 million euros ($124 million) if it buys Karstadt, followed by a further 400 million euros in the next five years. The investment firm also said it wants “market- conform rents” and performance-linked wages for workers. Spokespeople for Highstreet and Berggruen confirmed the offers, while declining to discuss details. Schulz also declined to provide any details of the bids. Two were received late yesterday and one this morning, he said. Shares Gain Arcandor AG , the insolvent parent of Karstadt, formed Highstreet in 2006, selling a majority holding to Goldman Sachs Group Inc.’s Whitehall real estate funds for 3.7 billion euros. Two years ago, the retailer sold its 49 percent stake in Highstreet for 800 million euros to a group formed by Pirelli & C. Real Estate SpA , Generali Real Estate Fund SA, Deutsche Bank AG’s RREEF Real Estate and Borletti Group. Arcandor shares rose 6 percent to 23 cents in Frankfurt trading today. The stock has almost doubled in value this week, giving the company a market value of 58.2 million euros. “The shares are rising on speculation that some remaining assets still have a value,” said Christoph Schlienkamp , an analyst at Bankhaus Lampe in Dusseldorf. “No money from a possible Karstadt sale will go to Arcandor.” Some Karstadt bidders have asked workers for wage cuts and landlords for lower rents. The Ver.di labor union has said it opposes pay cuts beyond those workers had already agreed on. To contact the reporter on this story: Holger Elfes in Dusseldorf, Germany, at helfes@bloomberg.net .
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Arcandor’s Karstadt Gets Three Bids Close to Deadline
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