Arkhouse and Brigade up Macy’s bid to 6.6 billion dollars

US department store retailer Macy’s has confirmed that Arkhouse Management and Brigade Capital Management have issued a revised proposal to acquire the company’s outstanding shares for 24 dollars per share.

The total would now amount to 6.6 billion dollars in cash, raising the offer by about 14 percent more than the duo’s initial 21 dollars per share proposal.

According to Arkhouse and Brigade, the increased purchase price represents a 33.3 percent premium to Macy’s closing share price on March 1, 2024.

The two investors added that they had further identified Fortress Investment Group and One Investment Management US as equity capital partners for the proposed transaction.

Managing partners of Arkhouse, Gavriel Kahane and Jonathon Blackwell, said in a release that they were “frustrated by the delay tactics adopted by Macy’s board of directors” and their “continued refusal to engage with our credible buyer group”.

Their statement continued: “Nonetheless, we are steadfast in our commitment to execute this transaction. In recent months, Macy’s has introduced two restructurings and a dividend hike.

“The stock price selloff following these announcements is a strong indication of shareholder concern about maintaining the status quo. We continue to offer the company an attractive alternative solution through a sale of the company at a substantial premium. This would provide Macy’s stockholders with significant value and immediate liquidity.”

In its own release, Macy’s said that the board would “carefully review and evaluate the latest proposal”, adding: “The Macy’s, Inc. board has a proven track record of evaluating a broad range of options to create shareholder value, is open-minded about the best path to achieve this objective and is committed to continuing to take actions that it believes are in the best interests of the company and all Macy’s, Inc. shareholders.”