Macy's Stock Plunges After It Ends Arkhouse, Brigade Buyout Talks
Michael M. Santiago / Getty Images' title='Macy's store on Herald Square in New York City'>
Michael M. Santiago / Getty Images
Key TakeawaysMacy's on Monday said it had ended negotiations with activist investor Arkhouse Management and Brigade Capital Management after finding their latest buyout offer "not compelling."The latest offer of $24.80 per share followed bids of $21 per share in December and $24 per share in March.Shares of Macy's swooned in intraday trading Monday.
After months of negotiation, Macy’s (M) on Monday said it had ended talks with would-be buyers Arkhouse Management and Brigade Capital Management.The announcement comes after the activist investors recently upped their offer by about $300 million to $6.9 billion.The two companies initially presented Macy’s with a $21-per-share deal to take the retailer private in December, which the board rejected. That led Arkhouse and Brigade to launch a proxy fight that ended when Macy’s approved two board members backed by the investors, after Arkhouse and Brigade came back in March with a $24-per-share bid.Macy's Deems Latest Offer 'Not Compelling'Arkhouse’s latest offer went as high as $24.80, a 38.3% premium over Macy’s closing price at the time, but the biggest U.S. department store chain dismissed it as “not compelling.”“Rather than delivering a definitive, fully financed and actionable proposal, Arkhouse and Brigade submitted a response they characterized as a ‘check in’ letter expressing an interest in acquiring all of the outstanding shares of the company for $24.80 per share in cash, which is within a range the board had previously communicated to Arkhouse and Brigade was not compelling,” Macy's said.Shares of Macy’s plunged more than 13% to $16.55 as of 11:15 a.m. ET Monday. Read the original article on Investopedia.
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