Macy’s Rejects a $5.8 Billion Buyout Offer Ahead of Store Shutdowns and Layoffs

Macy’s has rejected a $5.8 billion offer to take the iconic department store private, as it prepares to slash costs amid ongoing struggles.

Under the “unsolicited proposal,” which was submitted last month by investing firm Arkhouse Management and its partner Brigade Capital Management, the firms would have paid $21.00 per each outstanding share to take the company private. Financial firms have set their sights on the legendary retailer, believing the company, with its multibillion-dollar real estate portfolio, is undervalued in the stock market, an analyst told CBS MoneyWatch.

The offer fell flat with Macy’s board members because it “lack[ed] compelling value,” the clothing giant said Sunday in a statement. The company also cited its concerns over the firms’ “ability to finance their proposed transaction.”

Read the source article at CBS News