Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Macy's shares jump after investor group hikes takeover offer to $6.6 billion

Published 03/03/2024, 06:23 PM
Updated 03/04/2024, 05:58 AM
© Reuters.

Investing.com -- Shares in Macy's (NYSE:M) jumped in premarket U.S. trading on Monday after an investor group consisting of Arkhouse Management and Brigade Capital hiked its offer to take the department store chain private. 

The group is now offering $24 in cash per Macy’s share, up from its earlier offer of $21 per share, it said in a press release late on Sunday. The offer represents a 33% premium to Macy’s close on Friday, and values the chain at about $6.6 billion. Arkhouse said that the group was open to further increasing the takeover price.

Macy's said in a statement on Sunday that its board will review the new proposal.

The increased offer is the second after a previous bid was rejected in November. It also comes after Macy's announced a major restructuring drive that will see the firm slash costs, reduce inventory, and shutter 150 stores over the next three years.

"While the restructuring plan Macy’s unveiled last week failed to inspire investors, the fourth quarter earnings and year-end results have given us further confidence in the long-term prospects of the Company if redirected as a private company,"  Gavriel Kahane and Jonathon Blackwell, Arkhouse managing partners, said in a press release.

Arkhouse had nominated nine director candidates for Macy's board after the initial offer was rejected. Macy's board, meanwhile, signaled that it was prepared for a proxy fight.

The legacy retailer has been struggling to retain shoppers during a time of rising pressure from shifting consumer trends, particularly away from luxury items and more towards online shopping.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Still, Macy's surprised investors with a smaller-than-expected decline in its fourth-quarter earnings released last week.

Ambar Warrick contributed to this report.

 

 

 

 

 

Latest comments

Arkhouse had nominated nine director candidates for Macy's board after the initial offer was rejected. Macy's board, meanwhile, signaled that it was prepared for a proxy fight.   That will make an honest voting field.
g
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.