Arkhouse says in talks with Macy’s for due diligence amid push for higher bid

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On Thursday, Macy’s investor Arkhouse Management announced that the American department retailer was in discussions with the investment firm to open its books for due diligence in the hopes of receiving a larger bid.



According to Arkhouse’s regulatory filing (opens new tab), the board was “not prepared to transact at this price level” and the most recent offer was deemed “less than compelling” in a March 11 letter from Macy’s.

On March 3, the business and Brigade Capital left the door open for a bigger proposal, increasing their offer to $24 per share for the shares they did not already hold. This valued Macy’s at $6.6 billion.

In the filing, Arkhouse revealed that they and Brigade had sent a due diligence request list to Macy’s. The list contained the usual items that Macy’s would have to supply in order to validate or maybe raise the offer.

“Negotiations with respect to the confidentiality agreement remain ongoing and Arkhouse Management and Brigade continue to await access to the requested diligence materials,” according to the report.

Together with its affiliates, Arkhouse owns 4.4% of Macy’s. No remark was offered by the company.
Nine directors, including individuals with backgrounds in retail, real estate, and financial markets, were nominated to Macy’s 14-member board last month by the investment company, setting up a proxy fight.

The company’s stock rose almost 4% on Thursday.

Ethan Sullivan

Ethan's penchant for the pulse of the fashion world extends to covering lifestyle topics, offering readers a seamless blend of the latest style updates and lifestyle trends.

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