Dark
Light

Macy’s snubs Arkhouse’s $5.8B offer, financing causes cold feet.

1 min read
23 views

TLDR: Macy’s has rejected a $5.8 billion bid from Arkhouse Management and Brigade Capital Management to take the department store operator private. Macy’s cited concerns over deal financing and valuation as reasons for rejecting the proposal. Arkhouse and Brigade, however, believe there is potential for the proposal to be increased if they are granted access to due diligence. Investment bankers and analysts have previously said that while a deal for Macy’s is unlikely, Arkhouse and Brigade could succeed in unlocking more value for the company.

Macy’s rejected the bid from Arkhouse and Brigade due to concerns over deal financing and valuation

Information provided by Arkhouse and Brigade “failed to address the Board’s concerns regarding the ability to finance their proposed transaction”

Arkhouse believes there is potential for the proposal to be increased if given access to due diligence

Arkhouse and Brigade have a significant stake in Macy’s through Arkhouse-managed funds

Macy’s owns 316 of its 722 total stores and has struggled to compete against online competitors

Previous Story

MENA Fintech Association Cheers for Regtech SumSub

Next Story

Macy’s denies Arkhouse’s $5.8 billion offer, citing funding worries.

Latest from News