Macy's receives a higher buyout offer of $6.6 billion after rejecting investors' earlier bid
Macy's has received a higher buyout offer from two investment firms, Arkhouse Management and Brigade Capital Management, weeks after the department store chain rejected their prior takeover bid by saying it had a "lack of compelling value."
Shares of Macy's rose 3.4% in premarket trading.
Arkhouse and Brigade on Sunday said they are now offering a deal valued at $6.6 billion. Their all-cash buyout deal offers $24 each for the remaining shares that the firms don't already own, a 14% increase from their prior offer of $21 per share.
Macy's, which rejected their earlier offer in January, last week unveiled its own blueprint for revitalizing its struggling business, with its plans including closing 150 underperforming stores over the next three years. The retailer's new CEO, Tony Spring, said the closures will allow the business to focus on better-performing Macy's locations, with investments in customer service and updated product lines.
In their Sunday statement, Arkhouse managing partners Gavriel Kahane and Jonathon Blackwell criticized Macy's new plan, saying it "failed to inspire investors."
Since unveiling the plan to shutter 150 Macy's locations, the stock has declined 6.7%.
Macy's on Sunday confirmed that it had received the "revised, unsolicited, non-binding" proposal. The New York-based company said that its board would carefully review the offer, and that it did not intend to comment further until the evaluation was complete.
—With reporting by the Associated Press.
Aimee PicchiAimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.
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