NEW YORK, Jan 22 (Reuters): Macy's said on Sunday it had rejected Arkhouse Management and partner Brigade Capital Management's $5.8 billion proposal to take the department store operator private, citing concerns over deal financing and valuation.
Like other legacy department store operators, Macy's has struggled to compete against younger, online competitors or peers with smaller brick-and-mortar footprints. This has given Arkhouse, a real-estate-focused investing firm, and Brigade, a hedge fund, an opening to put pressure on Macy's to explore a sale.
The two investment firms submitted a proposal last month to acquire the shares of Macy's they don't already own for $21 a share.
The duo sees "the potential for a meaningful increase to the original proposal if we are granted access to the necessary due diligence," Arkhouse said in a statement.
Macy's rejects Arkhouse's $5.8b bid
FE Team | Published: January 22, 2024 23:29:50
Macy's rejects Arkhouse's $5.8b bid
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