Macy’s Declines $5.8B Offer

Macy’s (New York) “firmly rejected” a takeover proposal from Arkhouse Management and Brigade Capital Management that would take the department store private, according to a statement released by the two firms.

The proposal from the firms offered $21 per share, which equates to about $5.76 billion, based on Macy’s outstanding shares.

“We are highly motivated to consummate an acquisition of Macy’s and are prepared to pursue all necessary steps, including direct engagement with stockholders, to achieve this goal,” Arkhouse Managing Partners Gavriel Kahane and Jonathon Blackwell said in a statement.

Macy’s CEO Jeff Gennette stated in a letter to the firms’ executives, which was attached to the retailer’s press release, that the Macy’s board found that the “proposed cash equity contribution of only 25% of the required capital is well below current market levels for similar transactions.”