Canadian department store Hudson Bay bids for Kohl’s

Canadian department store Hudson Bay bids for Kohl’s

THE WHAT? Canadian department store Hudson Bay is said to be bidding for Kohl’s Corp, according to a source for the Wall Street Journal.

THE DETALS Kohl’s is reported to have invited offers by this week, with sources indicating that the company thought it was worth over US $70 per share. 

Private equity firm Sycamore Partners is also said to be planning a bid. 

Kohl’s shares rose by up to 17 percent to US$62.98, valuing the company at around US$8.76 billion.

THE WHY? Kohl’s is said to be feeling the pressure from activist investors to sell, however, has previously rejected two buyout offers from Sycamore and Starboard Value-backed Acacia Research valuing it at US$64 and US$65 per share.

Responding to Reuters in an email, Kohl’s said, “The board will measure potential bids against a compelling standalone plan.”