M: Macy’s Stock Soars 9.5% After Buyout Group Raises Acquisition Offer by $300M

Arkhouse and Brigade are looking to snap up shares they don’t already own for $24.80 a pop, or $6.9 billion.

• Macy’s stock M rose 9.5% Friday after the Wall Street Journal reported that two potential buyers are still looking to acquire it despite a recent rejection in the negotiation process. Arkhouse Management and Brigade Capital Management came forward with a new offer — $300 million extra for the retailer. The new proposal now amounts to $6.9 billion, which values the shares at $24.80.
• Macy’s closed Friday trading at $19.64 a share with a market cap of $5.43 billion. The buyout duo’s latest offer in March had a price tag of $24 a pop, shortly after a January bid was rejected by Macy’s 15-person board, citing it lacked “compelling value.” Now, the two sides have been talking since April, shortly after Arkhouse launched an activist campaign to get nine board seats to help with the acquisition effort.
• If successful with the buyout operation, the asset managers have pledged to take the storied retailer private and revamp its whole business model. Macy’s first-quarter sales fell from last year’s figures. It’s been struggling to come up with fresh ideas on how to compete with newer companies that bet heavily on online sales. For now, the 165-old retailer remains public.