Macy’s Nixes $5.8 Billion Takeover Bid From Arkhouse, Brigade Capital

Macy’s is rejecting a $5.8 billion takeover offer from investment firms Arkhouse Management and Brigade Capital Management, saying they didn’t provide a viable financing plan, Michelle Chapman reported for the Associated Press (AP).

The department store operator recently announced that it was closing five locations. I Photo: Macy's Facebook

Arkhouse and Brigade offered $21 for each of the remaining shares in Macy’s they don’t already own.

Shares of New York-based Macy’s rose 3.6% earlier in the week to close at $18.26. Last week, Macy’s said that it was laying off about 3.5% of its total headcount, or about 2,350 employees.

The department store operator also announced that it was closing five locations, Anne D’Innocenzio also reported for AP.

Macy’s said its board reviewed the proposal and not only had concerns about the financing plan but also felt there was a lack of compelling value.

“Following careful consideration and efforts to gather additional information from Arkhouse and Brigade, the board found that Arkhouse and Brigade’s proposal is not actionable and that it fails to provide compelling value to Macy’s Inc. shareholders,” Jeff Gennette, outgoing chairman and CEO of Macy’s, said.

“We continue to be open to opportunities that are in the best interests of the company and all of our shareholders.”

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