Arkhouse Management and Brigade Capital Management have increased their bid to purchase Macy's, now valued at $6.6 billion.
On Sunday, March 3, the investment companies said that they bumped up their previous offer of $21 per share to $24 for all of Macy's shares they do not already possess, as reported by ABC News.
The prior offer was $5.8 billion, but Macy's turned it down in January. The store said at the time that after reviewing the investment companies' proposal, its board found a "lack of compelling value" and had reservations about the financing arrangement.
Delaying Tactics?
On Sunday, Gavriel Kahane and Jonathon Blackwell, managing partners at Arkhouse, issued a joint statement expressing their ongoing commitment to closing the deal despite their frustration with Macy's board's delay tactics and inability to engage.
Kahane and Blackwell said they had been in touch with the firm many times to allay its fears and that, subject to the usual due diligence, they would consider a higher acquisition price.
Macy's confirmed that the revised bid had been received. The board of directors of the New York-based corporation has already begun reviewing the offer, and the company has said that it will refrain from making any additional comments until the analysis is complete.
Prior Proposals
Arkhouse took the step last month to propose nine candidates for the Macy's board. Back then, Macy's said it needed more funding details, while Arkhouse asked for ten more days to prolong the director nomination deadline.
Arkhouse, on the other hand, wanted to continue engaging privately and asked for a deadline extension after providing further financial data. Arkhouse said that after the proposal was turned down, the company nominated directors.
Following a disappointing fourth quarter and falling sales, Macy's announced last week that it would be closing 50 of its namesake locations by the end of the year, for a total of 150 store closures over the following three years. Among the reorganization's stated goals was the improvement of the remaining 350 locations of the department store chain.
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