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Investing.com — An investor group made up of Arkhouse Management and Brigade Capital announced late Sunday that Macy's (NYSE:) would take the company private, just months after the company rejected an earlier proposal. proposed.
The group is now offering $24 in cash for each Macy share, up from its previous offer of $21 a share, it said in a press release late Sunday. The offer represents a 33% premium to Macy's Friday's closing price and would value the chain at about $6.6 billion.
Ark House said the group is prepared to further increase the acquisition price.
Macy's said in a press release Sunday that its board will consider the new proposal.
The proposed increase is the group's second takeover offer after a rejected bid in November, but comes just after Macy's announced a major restructuring aimed at cutting costs, reducing inventory and closing 150 stores over the next three years. It was held in
“Macy's restructuring plan announced last week failed to excite investors, but its fourth-quarter and year-end results suggest what it would do if it reorganized as a private company,” said Gabriel Kahane and Jonathan Blackwell. “This gives us further confidence in our long-term prospects.” said Ark House Managing Partner in a press release.
After its initial offer was rejected, Arkhouse nominated nine director candidates to Macy's board, signaling that it was open to a proxy fight.
The traditional retailer has long struggled to retain shoppers, especially under pressure from changing consumer trends from luxury goods to online shopping.
Still, the department store chain's fourth-quarter results last week surprised investors by showing a smaller decline than expected.
