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Macy’s is rejecting a $5.8 billion takeover offer from investment firms Archhouse Management and Brigade Capital Management, saying they did not provide a viable financing plan.
Archhouse and Brigade offered $21 per share for the stock they did not already own.
Last week Macy’s Inc. said it was laying off About 3.5% of its total headcount, or about 2,350 employees. The department store operator also announced it was closing five locations.
Macy’s said its board reviewed the proposal and not only had concerns about the financing plan, but also felt it “lacked compelling value.”
“After careful consideration and efforts to gather additional information from Archhouse and Brigade, the board determined that Archhouse and Brigade’s proposal is not actionable and that it fails to provide attractive value to Macy’s Inc. shareholders,” Macy’s. said Jeff Gennett, outgoing president and CEO. , said in a statement. “We are open to opportunities that are in the best interests of the company and all of our shareholders.” Tony Spring Will take over as President and CEO of Macy’s next month.
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Shares rose more than 2% to $18.09 before markets opened on Monday.
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