Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Macy's leaps as hedge funds hike takeover offer

Published 04/03/2024, 12:33
Updated 04/03/2024, 12:33
© Reuters Macy's leaps as hedge funds hike takeover offer

Proactive Investors - Macy's, Inc. (NYSE:M) has received a $6.6 billion takeover offer from a consortium of hedge fund firms, whose previous bid was turned down earlier this year.

Arkhouse Management and Brigade Capital Management, now working with Fortress Investment Group and One Investment Management, have bumped up their offer for the department store operator by around $800 million from the $5.8 billion bid made in December, which Macy's rejected in January.

The consortium is offering to pay $24 per share for the Macy’s shares they don’t already own, up from $21 previously. This compares to the closing price of $18.01 on Monday.

Macy's share price leapt 17.6% higher to $21.18 in pre-market trading on Tuesday.

Bloomingdale's parent company rejected the prior bid from Arkhouse and Brigade because of a “lack of compelling value” as well as concerns about the financing.

Now, the hedge fund pair said today that private equity groups Fortress and One Investment will contribute 50% of the equity portion of the new offer.

The New York-based investment quartet already owns a sizeable stake in Macy's through funds managed by Arkhouse.

Analysts have suggested Macy's real estate portfolio is a key part of the deal, with an estimated value at about $8.5 billion, or $31 per share, including the Macy's flagship store on New York's Herald Square (NYSE:SQ) (pictured), calculated to be worth about $3 billion.

Read more on Proactive Investors UK

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.