Arkhouse and Brigade Capital Raise Macy’s Buyout Offer to US$6.9 Billion

Arkhouse and Brigade Capital Raise Macy’s Buyout Offer to US$6.9 Billion

THE WHAT?  Arkhouse Management and Brigade Capital have raised their buyout offer for Macy’s to US$6.9 billion, according to a report from the Wall Street Journal. This new proposal offers US$24.80 per share for the Macy’s stock they do not already own, up from the US$24 per share offer made in March.

THE DETAILS Shares of Macy’s saw a 1.1% increase in after-market trading following the news. The revised offer represents a nearly 43% premium over Macy’s closing price on December 8, when initial deal talks surfaced. Previously, Arkhouse, holding a 4.4% stake in Macy’s, had incrementally increased their offer price from US$21 to US$24 per share. The department store chain had previously ended a proxy contest with Arkhouse by appointing two nominees, Richard Clark and Richard Markee, to its board in April. These board members are now part of the finance committee tasked with evaluating the buyout proposal.

THE WHY? The increased offer highlights Arkhouse and Brigade Capital’s commitment to acquiring Macy’s amidst a competitive market. By raising the bid, they aim to gain majority control and leverage Macy’s assets for potential strategic advancements. The ongoing engagement with Macy’s board indicates a thorough evaluation process, considering the significant premium offered to the retailer’s shareholders.

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