AssetID: 53296397
Headline: UNCAPTIONED: Macy's Shares Rise After Reportedly Receiving $5.8 Billion Buyout Offer
Caption: Macy’s Shares Rise After Reportedly Receiving $5.8 Billion Buyout Offer. According to a person with knowledge of the situation, an investor group has offered $5.8 billion to take Macy's private, Reuters reports. The group reportedly consists of Arkhouse Management and Brigade Capital. They want to buy any Macy's stock that they don't already have for $21 per share, sources say. That represents a 20.76% premium from the stock's closing price of $17.39 on Dec. 8, Reuters reports. "The buyout group is undoubtedly interested in Macy's large real estate portfolio, which has attracted activists and potential buyers in the past.", Morningstar analyst David Swartz, via 'The Hill'. Upon news of the buyout offer, Macy's shares were up 16% on Dec. 11, trading at $20.13. The company's total real estate value is estimated to be $8.5 billion, according to J.P. Morgan analysts. That comes to $31 per share, which is less than the investor group's offer of $21 per share. However, Arkhouse and Brigade said that they are willing to "raise the offer subject to due diligence," Reuters repots. An investment bank has reportedly provided a letter of support indicating its belief that the group can secure financing for the deal. THIS VIDEO MUST NOT BE EDITED FOR LENGTH TO COMBINE WITH OTHER CONTENT
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