Macy’s is declining a $5.8 billion takeover bid put forth by investment firms Arkhouse Management and Brigade Capital Management, asserting that the proposed financing plan lacks viability.
Arkhouse and Brigade have proposed a $21-per-share offer for the outstanding stock.
Last week, Macy’s Inc. announced a workforce reduction of about 3.5%, affecting approximately 2,350 employees, along with the closure of five of its locations.
Macy’s board thoroughly assessed the offer, expressing not only reservations about the financing plan but also citing a perceived “lack of compelling value.”
In a statement, Jeff Gennette, outgoing chairman and CEO of Macy’s, stated, “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. shareholders. We continue to be open to opportunities that are in the best interests of the company and all of our shareholders.” Tony Spring is set to assume the role of president and CEO of Macy’s next month.
Before the market opening on Monday, shares climbed over 2% to $18.09.
