Investor Group Pitches $5.8 Billion Acquisition Proposal For Macy's
Portfolio Pulse from Benzinga Neuro
An investor consortium, including Arkhouse Management and Brigade Capital Management, has proposed a $5.8 billion acquisition of Macy's Inc. (NYSE:M) at $21 per share, a 32% premium over the previous day's closing price. Macy's, facing competition from digital retailers, has seen its share price decline from $70 in 2015 to $17.39 recently. The group believes Macy's is undervalued and is ready to increase the offer after due diligence. Macy's, led by CEO Jeff Gennette, is undergoing a turnaround strategy and reported $1.2 billion in profits on $24.4 billion in revenue last fiscal year.
December 10, 2023 | 10:22 pm
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Macy's Inc. received a $5.8 billion acquisition offer from an investor consortium at $21 per share, a significant premium over its recent closing price of $17.39.
The acquisition proposal is a direct and significant event for Macy's, offering a substantial premium over the current share price, which could lead to a short-term increase in stock price as the market reacts to the potential for a deal to be completed. The investor group's readiness to increase the offer could further fuel positive sentiment. However, the final impact will depend on the progress of the deal and market perception of its likelihood.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100