Macy’s
has become a takeover target and the stock is soaring.
A group of investors has offered $5.8 billion to buy the retailer and take it private, The Wall Street Journal reported Sunday.
Arkhouse Management, a real estate focused investing firm, and global asset manager Brigade Capital made the proposal on Dec.1, according to the report, which cited people familiar with the matter.
The group, which already has a large stake in
Macy’s,
offered to buy the remaining shares for $21 a share and has discussed the offer with the retailer, the report added.
The stock jumped 19% to $20.73 in premarket trading Monday. Coming into the day, the shares are 16% down in 2023, though they have climbed 59% over the past month.
The investor group believes Macy’s is undervalued in the public market and could be willing to increase its offer, the Journal reported. The stock is trading significantly below the highs of around $70 reached in 2015 after years of intense competition from online retailers.
The premium being offered for Macy’s boosted the shares of its rivals ahead of the open.
Kohl’s
stock rose 4.6% and
Nordstrom
was up 4.3%.
Macy’s did not immediately respond to a request for comment early Monday.
Write to Callum Keown at callum.keown@barrons.com
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