Macy's investors lodge $5.8 bn takeover bid

Macy’s investors have reportedly made a multibillion offer to take the iconic US department store chain private.

According to Reuters, real-estate investment firm Arkhouse Management and global asset manager Brigade Capital have made a $5.8 billion proposal to acquire the remaining stock it doesn’t own at $21 per share.

The offer represents a premium of more than 20 per cent from its closing at $17.39 on Friday, the report notes.

Reuters adds that Macy’s board met to discuss the offer following its submission earlier this month, but it is currently unclear how it views the proposal.

It is understood that the investors view the Bloomingdales parent as undervalued in the public markets, with a further report from the Wall Street Journal noting that Arkhouse and Brigade have shown a willingness to raise the offer subject to due diligence. The report also notes that an unnamed investment bank has submitted a letter supporting the pair’s ability to raise the necessary finance.

The retailer, which has a market cap of around $4.77 billion, significantly outperformed analyst estimates in its most recent financial reports.

Around 400 Macy’s workers last month staged a walkout on Black Friday after 96 per cent of workers voted in favour of authorising the strike in October. The UFCW 3000 union had called on the retailer to increase wages in light of positive financial performance and an increased $11 million pay packet for chief exec Jeff Gennette.

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