Macy’s Inc. announced on Monday that it has ended talks with Arkhouse Management Co. LP and Brigade Capital Management, LP regarding a potential acquisition of the company. Despite an offer from the activist investors worth approximately $6.9 billion, Macy’s board determined that the proposal was not actionable or fully financed.
Discussions between Macy’s and the investors began in December of last year, but ultimately did not result in a successful deal. In March, Arkhouse and Brigade increased their initial offer of $21 per share to $24 per share; however, this latest bid was still deemed unappealing by Macy’s board.
Moving forward, Macy’s will continue to implement its “A Bold New Chapter” strategy which includes closing 150 underperforming stores. According to lead independent director Paul Varga,”The board is fully supportive of this strategy as we believe it presents the best opportunity for value creation.”
