Macy’s is rejecting a $5.8 billion takeover offer from investment firms Arkhouse Management and Brigade Capital Management, saying they didn’t provide a viable financing plan.
Macy’s is rejecting a $5.8 billion takeover offer from investment firms Arkhouse Management and Brigade Capital Management, saying they didn’t provide a viable financing plan.
Arkhouse and Brigade offered $21 for each of the remaining shares in Macy’s they don’t already own. Shares of New York-based Macy’s rose 3.6% Monday to close at $18.26.
Last week Macy’s said that it was laying off about 3.5% of its total headcount, or about 2,350 employees. The department store operator also announced that it was closing five locations.
Macy’s said its board reviewed the investment firms’ proposal and not only had concerns about the financing plan, but also felt there was a “lack of compelling value.”
“Following careful consideration and efforts to gather additional information from Arkhouse and Brigade, the board determined that Arkhouse and Brigade’s proposal is not actionable and that it fails to provide compelling value to Macy’s Inc.
