Arkhouse and Brigade Capital raise Macy’s bid to $6.9 billion

THE WHAT? Arkhouse Management and Brigade Capital have increased their takeover bid for Macy’s to $6.9 billion, according to a report by The Wall Street Journal. The new proposal is for $24.80 per share for the Macy’s stock they don’t already own, up from $24 per share in March.

THE DETAILS Macy’s shares rose 1.1% after the announcement. The revised offer represents a nearly 43% premium to Macy’s closing price on Dec. 8, when talk of the deal first surfaced. Previously, Arkhouse, which owns a 4.4% stake in Macy’s, had been gradually raising its offer price from $21 to $24 a share. The department store chain had previously ended a proxy fight with Arkhouse by appointing two nominees, Richard Clark and Richard Markee, to its board in April. Those board members are now part of the finance committee tasked with evaluating the takeover proposal.

THE WHY ? The increased offer underscores Arkhouse and Brigade Capital’s commitment to acquiring Macy’s in a competitive market. By increasing the offer, they aim to obtain majority control and leverage Macy’s assets for potential strategic advancements. Continued engagement with the Macy’s Board of Directors indicates a thorough evaluation process, given the significant premium offered to the retailer’s shareholders.