Arkhouse Management Co., in collaboration with Brigade Capital Management, is seeking additional financial information from Macy’s Inc. The request comes after the US department store operator declined a $5.8 billion takeover offer from the investment firm and Brigade Capital Management. Gavriel Kahane, managing partner at Arkhouse, expressed hope for a confidentiality agreement to facilitate sharing more financing details.
Macy’s rejected the $21 per share bid, citing a lack of “compelling value” and expressing concerns about the bidders’ ability to finance such a substantial deal. Despite earlier hints about taking the offer directly to Macy’s shareholders, Arkhouse has not initiated such steps.
Kahane remains optimistic, suggesting the possibility of an increased offer if Arkhouse gains access to Macy’s financial records. He reassured that their investor group has ample funds readily available for the transaction.
Macy’s has faced challenges with the increasing trend of online shopping, prompting plans to cut jobs and close stores. However, Kahane downplays the effectiveness of these measures, anticipating only “negligible” improvements in performance.
As of Monday, Macy’s shares were up 2.7%, reflecting a market value of around $5 billion. Despite this uptick, the stock has experienced a decline of more than a fifth over the past year.
