🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Arkhouse, Brigade raise Macy's buyout bid to $6.6 billion

Published 03/03/2024, 05:18 PM
Updated 03/04/2024, 05:40 AM
© Reuters. FILE PHOTO: A customer exits the Macy's flagship department store in midtown Manhattan in New York City, U.S., December 11, 2023.  REUTERS/Brendan McDermid/File Photo/File Photo
M
-

(Reuters) -Arkhouse Management, a real-estate-focused investing firm said on Sunday it and Brigade Capital Management have raised their offer for Macy's after the department store chain rebuffed their prior proposal as too low.

The firms are now offering to acquire Macy's stock they don't already own for $24 per share, about 14% more than its previous offer of $21 per share.

The new offer for the company represents a premium of about 33% to its last close on Friday at $18.01 and values the company at $6.6 billion.

"We continue to offer the company an attractive alternative solution through a sale of the company at a substantial premium. This would provide Macy's stockholders with significant value and immediate liquidity," Arkhouse said.

"The Macy's Inc (NYSE:M) Board will carefully review and evaluate the latest proposal," Macy's said in a separate statement.

The two investment firms had submitted a proposal in December last year to acquire the shares of Macy's they don't already own for $21 a share but the offer was rejected by the department store operator due to concerns over the deal's financing and valuation.

© Reuters. FILE PHOTO: A customer exits the Macy's flagship department store in midtown Manhattan in New York City, U.S., December 11, 2023.  REUTERS/Brendan McDermid/File Photo/File Photo

Like other legacy department store operators, Macy's has struggled to compete against younger, online competitors or peers with smaller brick-and-mortar footprints. This has given Arkhouse and Brigade an opening to put pressure on Macy's to explore a sale.

Macy's is also facing a board challenge from Arkhouse Management after the investment firm nominated nine director candidates including executives with retail, real estate and capital markets experience, to the department store's 14-member board last month.

Latest comments

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.