Macy's Inc. said: On Sunday it rejected an unsolicited offer from Arkhouse Management and Brigade Capital Management to take the department store chain private in a $5.8 billion deal, citing concerns about financing.
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He said Arkhouse and Brigade failed to address the board's concerns about their ability to finance the deal, and found a “lack of compelling value in their non-binding proposal.”
“After careful consideration and efforts to gather additional information from Arkhouse and Brigade, the Board of Directors has determined that Arkhouse and Brigade's proposal is not feasible and fails to deliver compelling value to Macy's, Inc. shareholders,” Macy's CEO Jeff Gennette said in a statement. statement. “We continue to be open to opportunities that are in the best interest of the company and all of our shareholders.”
Earlier on Sunday, Arkhouse confirmed that it and Brigade had made an offer to buy Macy's for $21 a share on December 1, and threatened to take the matter directly to Macy's shareholders if talks did not resume this week. “We see potential for a significant increase in our original proposal if we are given access to the necessary due diligence,” Arkhaus added.
Read also: These analysts say Macy's properties alone are worth nearly $3 billion more than investors are offering
Macy's shares jumped after the buyout offer was first announced in December, but have lost some of those gains since then.
Last week, Macy's said it would lay off 13% of the company's employees — roughly 2,350 jobs — and close five stores in an effort to cut costs.
Macy's stock is down about 23% over the past 12 months, compared with the S&P 500 SPX's gain of 22%.
