Macy's stock soars on larger takeover bid

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.

Shares of Macy’s (M) soared in intraday trading Friday on indications that activist investor Arkhouse Management and its partner Brigade Capital Management have again upgraded their offer for the largest U.S. department store chain.

The Wall Street Journal It was reported Wednesday evening that the two companies had increased their offer for Macy’s by about $300 million, to $6.9 billion. The $24.80 per share for 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 had initially offered Macy’s a $21-a-share bid in December, which the board rejected. That led Arkhouse and Brigade to launch a proxy fight that ended when Macy’s approved two investor-backed board members after Arkhouse and Brigade responded 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.