M - Why Macy's Stock Jumped Nearly 10% on Friday
2024-07-05 16:39:49 ET
Shares of department store chain Macy's (NYSE: M) rallied 9.5% on Friday, lifted by reports that a pair of suitors is raising their collective offer to acquire the struggling company. Although Macy's itself has neither confirmed nor denied the report, in March it did confirm the receipt of a previous offer from the same consortium at a lower per-share price. The timing of the Independence Day holiday could be preventing the company's management from making a timely response.
The Wall Street Journal is largely responsible for today's surge, reporting after Wednesday's close that investment management companies Arkhouse Management and Brigade Capital Management are upping their joint bid to buy Macy's at $24.80 per share. The most recently reported bid is roughly 25% above the stock's present price, valuing the retailer at about $6.8 billion.
Macy's has not publicly responded to the news. But the Journal 's report is credible in light of the history here. Last year's $5.8 billion bid from the same duo was rejected, as was March's effort to purchase all Macy's shares at $24 apiece. Then in April the department store chain added two new directors hand-picked by the activist investment management outfits. These two board members are now leading a committee exploring a sale of the retailer that would privatize the retailer .
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Why Macy's Stock Jumped Nearly 10% on Friday