(Reuters) – Macy’s on Sunday rejected the $5.8 billion takeover offer made by the consortium of investors bringing together Arkhouse Management and its partner Brigade Capital Management, citing concerns over the financing and valuation of this operation.
Arkhouse Management, an investment group specializing in real estate, confirmed earlier today that it had submitted an offer of $21 per share with asset manager Brigade Capital Management for Macy’s shares, which the two groups do not hold. Already.
It said in a statement it was prepared to raise its proposal “significantly” if given access to carry out due diligence.
Macy’s rejected the proposal, saying its board had decided not to enter into a confidentiality agreement and not to authorize Arkhouse and Brigade to conduct audits, due to the lack of “attractiveness” of the ‘offer.
In a statement, the American department store chain also said that the two groups had not responded to the concerns of its board of directors regarding their ability to carry out such a financial transaction.
Like other department store chains, Macy’s is struggling to cope with the growth of online commerce, in particular. It announced last week that it would cut some 2,350 jobs and close five stores in a bid to simplify its operations.
(Written by Kanjyik Ghosh and Abigail Summerville; French version Jean Terzian)
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