Investor Group Raises Bid for Macy’s

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The investor group eyeing Macy’s has shown a willingness to increase their offer in order to secure the purchase of the department store chain.

Increased Bid

Macy’s stock experienced a surge at the start of the week as Arkhouse Management and Brigade Capital raised their bid by almost $1 billion. The new offer now stands at $24 per share, totaling $6.6 billion, up from the initial $21 per share or $5.8 billion bid.

Intensifying Proxy Battle

This move marks the next phase in an escalating proxy battle over the future of Macy’s, following the rejection of a previous offer in January by the company’s board.

Shareholder Response

While investors have shown enthusiasm for the revised offer, with the stock experiencing a 15% jump to $20.70 pre-market on Monday, it still trades below the offer price, acknowledging that the deal is not yet finalized.

New Growth Strategy

In response to the ongoing proxy battle, Macy’s recently announced a new growth strategy. This plan includes the closure of around 150 unproductive stores in the long term, representing a quarter of its footprint. The company also plans to reinvest in remodeling the remaining 350 Macy’s stores and opening more small outlets.

Conflicting Market Response

Despite unveiling this strategic pivot under new CEO Tony Spring, Macy’s stock dropped about 8% last week, with Arkhouse mentioning that the restructuring plan did not excite investors.

Alternative Solution

Arkhouse reiterates its confidence in Macy’s long-term prospects if it undergoes a shift to being a private company. The managing partners emphasized their proposal for a sale of the company at a substantial premium, providing stockholders with significant value and immediate liquidity.

Macy’s has yet to respond to requests for comments regarding this latest development.

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