Arkhouse and Brigade Raise Macy's Takeover Bid to $6.6 Billion

In a significant move within the retail sector, Arkhouse Management and Brigade Capital Management have increased their bid to take over the iconic department store Macy's, with a new offer coming in at $6.6 billion.

New Offer on the Table

After an initially rejected proposal, made in January, which saw a value of $5.8 billion or $21 per share, the two investment firms have returned with a superior proposition. They have presented an all-cash offer of $24 per share for the remaining stock of Macy's that they do not hold. The retailer previously turned down the first offer citing doubts over the proposed financing structure and the offer failing to present an adequately attractive value.

Persistence Amidst Rejection

Gavriel Kahane and Jonathon Blackwell, managing partners at Arkhouse, expressed their frustration with what they consider 'delay tactics' by Macy's board and its persistent refusal to engage in discussions. Despite these hurdles, the partners affirm their dedication to pushing ahead with the acquisition. They are intent on addressing the company's concerns and indicate they may raise the bid further if deeper due diligence supports such a move.

Macy's Response to the Raised Bid

Macy's confirmed the receipt of the new, increased offer, classifying it as 'revised, unsolicited, and non-binding.' The New York-based company's board is set to review the acquisition proposal with care but will withhold further commentary until the evaluation is fully concluded.

Aiming for Influence Over Macy's Future

In their quest for increased influence over Macy's future, last month, Arkhouse took measures to nominate a slate of nine candidates to the Macy's board. The strategic move occurred as Macy's called for further details on the financing of Arkhouse's propositions, whereas Arkhouse urged the retailer to prolong its director nomination period by ten days.

Macy's Restructuring Efforts

Macy's current trajectory includes closing 150 stores within a three-year span, hastening its restructuring process. This initiative is part of a broader effort to modernize and enhance 350 remaining stores, coming on the heels of a fourth-quarter loss and a dip in sales figures.

Acquisition, Retail, Investment