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Macy’s Terminates Discussions for $6.9B Takeover Bid
Macy’s Inc. said Monday it had terminated discussions with Arkhouse Management Co. LP and Brigade Capital Management, LP about a takeover of the company. The most recent offer from the activist investors would have resulted in a deal valued at about $6.9 billion, but Macy’s said its board determined that the would-be buyers failed to deliver an actionable, fully financed proposal.
Discussions between Macy’s and the investors had been underway since last December. Arkhouse and Brigade in March increased their offer for Macy’s to $24 per share from the initial $21/share proposal. The most recent bid would have entailed paying $24.80 per share, a figure the Macy’s board considered “not compelling.”
The retailer said it would move ahead with its previously announced “A Bold New Chapter” strategy, which includes closing 150 underperforming stores. “The board fully supports A Bold New Chapter strategy, and we believe it provides the best opportunity for value creation,” said lead independent director Paul Varga.
- ◦Sale/Acquisition
