Eva Marie Uzcategui/Bloomberg via Getty Images
Key points to remember
Activist investor Arkhouse Management and its partner, Brigade Capital Management, have reportedly once again increased their bid to buy Macy’s.
The Wall Street Journal reported that the new offer was $24.80 per share, up from the initial offer of $21 in December and $24 made in March.
The report sent Macy’s shares up about 11% in intraday trading Friday.
Macy’s Stock (M) soared in intraday trading Friday on indications activist investor Arkhouse Management and its partner Brigade Capital Management have again improved their offer for the largest American department store chain.
The Wall Street Journal The company announced late Wednesday that the two companies had increased their offer for Macy’s by about $300 million to $6.9 billion. The $24.80 per share price for the shares that Arkhouse and Brigade don’t already own would represent a 38.3% premium to Macy’s closing price Wednesday.
This would be Duo’s third bid for Macy’s since December.
The two companies initially offered Macy’s a $21-per-share deal in December, which the board rejected. That led Arkhouse and Brigade to launch A proxy fight that finished when Macy’s approved two investor-backed board members, after Arkhouse and Brigade came back in March with a $24-a-share offer.
When reached by InvestopediaA representative for Arkhouse declined to comment. Investopedia also reached out to Macy’s for comment.
The news sent Macy’s shares up about 11% to $19.88 as of 11:30 a.m. ET Friday. They are down about 1% for 2024.
Read the original article on Investopedia.
