Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Kohl's under fresh pressure as Sycamore expresses interest after Acacia made bid

Stock MarketsJan 23, 2022 09:26PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A sign marks a Kohl's store in Medford, Massachusetts, U.S., February 21, 2017. REUTERS/Brian Snyder

By Svea Herbst-Bayliss

(Reuters) -U.S. department store Kohl's Corp (NYSE:KSS) may soon receive a second takeover offer as private equity firm Sycamore Partners prepares to make a bid only days after a consortium backed by activist investment firm Starboard Value proposed buying the company, three sources familiar with the matter said on Sunday.

Sycamore Partners has reached out to Kohl's about a potential offer that would value the company around $9 billion, one source said. The firm is willing to pay at least $65 a share in cash for the company, the source said.

The news comes two days after Acacia Research, which is backed by Starboard, offered to pay $64 a share for Kohl's, confirming a Reuters report last week that Acacia had reached out to the company to express its interest in a takeover.

There are no guarantees that Sycamore Partners will make a bid or that a deal will be reached with either Sycamore or Acacia, the sources said. Bloomberg first reported Sycamore's interest on Sunday and the Wall Street Journal reported the Acacia bid on Friday.

Representatives for Sycamore, Acacia and Kohl's did not immediately respond to requests for comment.

Sycamore's interest in Kohl's illustrates investors ongoing interest in retailers and the troubles that brick and mortar retailers are facing as the pandemic has largely prompted customers to shift buying habits in favor of online retailers.

Kohl's has been facing pressure from activist investors to perform better for roughly a year and their ongoing unhappiness has become more visible in the last weeks after the company's share price climbed only 5% in the last year.

Last week activist investment firm Macellum Advisors, which owns 5% of Kohl's stock, told the company to explore strategic options, including a sale, and warned it planned to nominate directors to its board. Late last year activist firm Engine Capital also said it wants Kohl's to consider a sale.

Macellum's fresh pressure comes less than a year after it, along with two other activists, reached a settlement that saw Kohl's add three new directors to the board. Macellum called 2021 "another lost year" at Kohl's and criticized the stock price's 22% drop from April through last week.

Kohl's said last week its "strategy is producing results" and management and the board "refuse to be distracted" from delivering stronger results for all investors.

Sources said Acacia and Starboard, one of the industry's most respected and busiest activist investors, would likely work with Oak Street Real Estate Capital to try and sell off Kohl's real estate holdings to raise additional capital for a transaction. Kohl's has historically been opposed to sale-leasebacks of its real estate.

Kohl's under fresh pressure as Sycamore expresses interest after Acacia made bid
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Joe Wiggs
Joe Wiggs Jan 24, 2022 7:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
First offer is $65/share. We only buy tennis shoes online when they are on sale. The use the Kohl’s cash to get free socks. :-)
Ric Later
riclater211 Jan 23, 2022 4:37PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
why would anyone want to buy a subpar retailer? Every KHOLS stores i pass by look empty except for the people using them to drop off Amazon returns. It's not my money but there are plenty of companies better than KHOLS. Nearly any other one.KSS is loser based on both fundamentals and technical analysis. Unless they know something we don't!
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email