Department store chain Macy’s has received a US $ 5.8 billion acquisition offer from an investor group composed of real estate-focused investing firm Arkhouse Management and global asset manager Brigade Capital, say reports. The company declined to comment on the offer at this time.
“While this would be lucrative for investors, it would not, in our opinion, bode well for the future of Macy’s,” said Neil Saunders, MD at GlobalData.
The deal is made in the face of fierce competition from internet merchants who have significantly reduced Macy’s worth.
According to Saunders, Arkhouse’s offer is 32 per cent more than the share price, and Macy’s real estate holdings are estimated to be worth at least US $ 6 billion on a conservative basis.
“A decision needs to be made by management now. They can either remain a publicly traded firm and demonstrate their commitment to the future, or they may allow Macy’s to go private in a deal that will probably cause the brand to deteriorate much more quickly, according to Saunders.
Macy’s revealed last month that its third-quarter net sales down 7 per cent year over year to US $ 4.86 billion, while its net income fell 60 per cent to US $ 43 million.
