The retailer Macy’s rejected a $5.8 billion takeover bid late Sunday that valued the struggling department store chain at roughly 20 percent above its closing share price on Friday, but suggested it was “open to opportunities.”The bidders, Arkhouse Management and Brigade Capital, are seeking to acquire Macy’s stock they do not already own at $21 a share and have threatened to take the offer to shareholders.
With a potential hostile bid looming, questions are rising over how Arkhouse and Brigade could pull off a deal and whether additional suitors could appear, potentially setting off a bidding war.
In a statement released Sunday night, Macy’s board questioned whether the investment firms had the money to finance the deal, which it said “lacks compelling value.” It noted that the bid was accompanied by a letter with “numerous” untraditional stipulations.
Persons:
Macy’s
Organizations:
Arkhouse Management, Brigade