Diego Della Valle and entities he controls lost a $6.4 million options bet in 2011 that shares of Saks Inc. would rise above $12.95.
According to a regulatory filing with the Securities and Exchange Commission on Tuesday, Della Valle held call options that expired on Dec. 30 without being exercised.
Those options were for the purchase of 8 million shares of Saks. The options were acquired on Oct. 19, and had a strike price of $12.95. That bet is $3.20 higher than the close of Saks’ stock price on Dec. 30 at $9.75. Shares of Saks on Tuesday closed at $10.17 in trading on the New York Stock Exchange.
On Oct. 19, when the options were acquired, shares of Saks closed at $10.38, up from the 52-week low in 2010 of $6.14 on Feb. 5. The 52-week high in 2010 was $12.22 in intraday trading on Nov. 5.
In 2011, Saks shares hit an intraday high of $12.97 on Feb. 17 and Feb. 18. Since then shares of Saks drifted down to a 52-week low of $7.67 on Aug. 19 in intraday trading.
Had Della Valle exercised all of those options, his stake would have been 30.7 million shares, or 19.1 percent ownership of Saks, putting him ahead of Mexican billionaire investor Carlos Slim Helú.
Instead, Della Valle’s Saks holding remains at 22.7 million shares, or a 14.2 percent stake in Saks. In comparison, Slim Helú, who boosted his holdings in Saks in August through family investment vehicle Inmobiliaria Carso SA de CV, has a 16.9 percent stake, or 26.5 million shares.
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