Macy’s Rejects Arkhouse’s $5.8B Unsolicited Takeover Proposal

Arkhouse Management and Brigade Capital Management confirmed it forwarded an acquisition proposal to Macy's on Dec. 1, 2023. The company said that, along with its partner, they offered to buy the department store chain for $5.8 billion.

Arkhouse Management's bid to acquire the company will also make way for Macy's to become a private firm. The real estate investing firm and its asset manager partner submitted the bid to acquire stock in Macy's that they still do not own for $21 per share.

Arkhouse Expressed Confidence in its Bid

The Arkhouse group already has a considerable stake in Macy's and is being held in Arkhouse-managed funds. The company said that two subsidiaries have engaged in private talks with Macy's for the buyout.

The company said that Jefferies Investment Banking Company is serving as the financial adviser for the acquisition. It has provided a letter to Macy's stating its ability to raise the needed funds. It said it is confident it can obtain the money for the deal and is optimistic about a positive response.

Macy's Rejects Arkhouse's Takeover Bid

Several hours after Arkhouse announced it had submitted a proposal to buy Macy's for $5.8 billion, the department store chain issued an official statement. The company declined the offer and will not enter into the agreement due to the Board's concerns and finding the value not compelling enough.

"The Macy's, Inc. Board of Directors and management team have a proven track record of evaluating a broad range of options to enhance shareholder value," Macy's chairman and chief executive officer, Jeff Gennette, said in a press release. "Following careful consideration and efforts to gather additional information from Arkhouse and Brigade, the Board determined that Arkhouse and Brigade's proposal is not actionable and that it fails to provide compelling value to Macy's, Inc. shareholders."

The CEO added that while they have rejected the offer from Arkhouse, Macy's will continue to be open to other opportunities that may come their way. As long as they are "in the best interests of the Company and all of our shareholders," the company will likely consider them.

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