An investor group, which submitted a $5.8 billion bid for Macy’s Inc. M, is considering a direct appeal to shareholders if negotiations with the department store giant do not progress.
As reported by The Wall Street Journal, Arkhouse Management and Brigade Capital Management proposed on December 1 to purchase all outstanding Macy’s common stock they do not currently own at $21 per share.
Despite initial gains following the report, Macy’s stock value has since declined, closing at $17.63 on Friday. This gives the company a market capitalization of $4.8 billion.
The investor group, holding a substantial position through Arkhouse-managed funds, has engaged in private talks with Macy’s regarding their proposal. In the absence of a pending agreement, Arkhouse is ready to directly involve shareholders, which could result in a board seat battle or a hostile takeover attempt.
Arkhouse suggested it could significantly increase its initial proposal if allowed to proceed with requisite due diligence. The group has proposed signing a mutual non-disclosure agreement to provide more details about its financing and strategy, and has requested a response from Macy’s this week.
“We are highly motivated to consummate an acquisition of Macy’s and are prepared to pursue all necessary steps, including direct engagement with stockholders, to achieve this goal,” said Arkhouse Managing Partners Gavriel Kahane and Jonathon Blackwell.
Macy’s, who also own Bloomingdale’s and Bluemercury, has not yet publicly responded to the investor group’s proposal. More information about the company’s new strategy under incoming Chief Executive Tony Spring is anticipated to be provided in the coming weeks.
The stock closed last at $17.63, reflecting a significant drop from the proposed $21 per share acquisition price.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.