STORY: Macy’s appears to face a buyout bid.
Investors Arkhouse Management and Brigade Capital have made a $5.8 billion offer to take the department store private.
That was according to a Reuters source on Sunday (December 10).
The investors already have a big stake in the store chain, and the source says they have discussed the offer with management.
The Macy’s board reportedly met to consider the bid, but it’s not clear what position they have taken.
Arkhouse and Brigade believe that the firm is undervalued, according to reports by the Wall Street Journal.
It says they could be willing to up their offer.
There was no comment from any of the parties involved.
Macy’s crushed forecasts for earnings over the latest quarter.
That was thanks to lower inventories and strong demand for beauty products.
However, it’s currently valued at just under $4.8 billion, meaning the bid comes at a premium of around 20%.
Some industry experts wonder if Arkhouse and Brigade can actually execute such a big deal though, having never done anything of this magnitude.
