Macy's (M) ended buyout talks with an investor group led by Arkhouse Management and Brigade Capital, which had proposed acquiring the department store chain for $6.9 billion. Macy's stated that the offer did not provide compelling value and that there were uncertainties regarding its financing. The termination of these discussions caused Macy's shares to plummet by 15% on Monday. The investor group had previously revised their offer to $24.80 per share, valuing Macy's at $6.86 billion, which represented a 43% premium to the stock’s close on Dec. 8 when the bid first emerged. The decision to halt buyout negotiations comes after months of efforts and the involvement of Arkhouse’s nominees on Macy’s board's finance committee. Macy's had opened its books to the investor group and provided extensive information and time for them to secure financing. However, Macy’s stated there was "no actionable proposal" from the investors after four months of due diligence. Macy's will now focus on its turnaround plan led by new CEO Tony Spring, aiming to boost performance ahead of the holiday season through job cuts and store closures. Market Overview:
- Macy's shares plummeted by 15%.
- The buyout offer was $24.80 per share.
- Investor group included Arkhouse Management and Brigade Capital.
- Macy's will focus on its turnaround plan.
- The offer did not provide compelling value.
- Job cuts and store closures planned through 2026.
- Opening new Bloomingdale's and Bluemercury stores.
- Focus on luxury brands for growth.
- Peer Nordstrom also a recent takeover target.
/Microsoft%20sign%20at%20the%20headquarters%20by%20VDB%20Photos%20via%20Shutterstock.jpg)
