NEW YORK — Luxury retailer Saks is being bought by the parent of Lord & Taylor for about $2.4 billion.

The news comes a little over a month after reports surfaced that Hudson's Bay Co. was interested in buying Saks Inc.

Hudson's Bay, which also runs some Canadian department stores, will pay $16 per share for Saks, a 5 percent premium over the company's Friday closing price of $15.31.

The companies put the deal's total value at about $2.9 billion including debt. FactSet says the New York-based retailer has about 150.2 million outstanding shares.

Saks' stock jumped more than 3 percent in today premarket trading. Shares are up 46 percent for the year to date.

Saks will continue to run as a separate company under Hudson's Bay and will have its own merchandising, marketing and store operations employees. Key management personnel are expected to remain with the company.

Saks will have a 40-day period in which to seek out alternative third-party bids.

The buyout, which was approved by both companies' boards, is targeted to close before year's end. It still needs approval from Saks' shareholders.