Arkhouse is currently engaged in discussions with Macy’s regarding due diligence, as part of their efforts to secure a higher bid. According to a disclosure made by Macy’s investor Arkhouse Management, the U.S. department store is in talks with the investment firm to grant access to its financial records for the purpose of evaluating the potential for an increased offer.
This development follows a letter from Macy’s on March 11, which described the latest offer as “less than compelling” and indicated that the board was not inclined to proceed with a transaction at the proposed price level.
Previously, Arkhouse Management, in collaboration with Brigade Capital, increased their bid to $24 per share for the outstanding shares they do not currently possess, thus assessing Macy’s worth at $6.6 billion, and expressing openness to reconsider a further elevated offer.
Arkhouse and Brigade Capital have submitted a request list for due diligence to Macy’s, consisting of customary items necessary to validate or potentially enhance the offer.
Negotiations regarding the terms of the confidentiality agreement are ongoing, with Arkhouse Management and Brigade awaiting access to the requested diligence materials.
Arkhouse Management, along with its affiliates, holds a 4.4% stake in Macy’s but declined to provide further comment on the matter.
The investment firm has also nominated nine director candidates, including individuals with expertise in retail, real estate, and capital markets, for Macy’s 14-member board, marking the commencement of a proxy battle.
Following these developments, Macy’s shares experienced a nearly 4% increase in value on Thursday, 14th March 2024.