Retail stock giant Macy's jumped Monday as the investor group looking to buy the company boosted its bid for the department store chain by nearly $1 billion for a total sum of just under $7 billion.
Real estate-focused investor Arkhouse Management and alternative asset manager Brigade Capital Management increased their bid for Macy's by nearly $1 billion late Sunday. The investors upped the offer to $24 per share, or $6.6 billion, from $21 per share or $5.8 billion.
The Macy's board in late January rejected the $5.8 billion takeover offer.
Macy's stock soared 13.3% to 20.41 Monday during market action. Before the market opened, M shares surged more than 16%.
On Friday, M stock advanced 3.3% to 18.01. Ahead of Monday trade, Macy's stock had fallen around 10.5% in 2024, booking losses in January and February.
Macy's last week announced a new growth and restructuring strategy, which included plans to close around 150 stores.
Arkhouse Managing Partners Gavriel Kahane and Jonathon Blackwell said in a joint statement Sunday that shareholders are concerned about "maintaining the status quo."
"We continue to offer the company an attractive alternative solution through a sale of the company at a substantial premium," they said in the statement. "This would provide Macy's stockholders with significant value and immediate liquidity."
The New York-based retail giant's brands include its flagship Macy's and Bloomingdale's as well as specialty stores like Bluemercury, Bloomingdale's The Outlet and Macy's BackStage. Its 786 stores are spread across the U.S., Puerto Rico and Guatemala. Macy's also runs an e-commerce segment and a mobile app.
The brand sells apparel, accessories, cosmetics, home furnishings and other consumer goods.
Macy's stock has a 76 Composite Rating out of 99, a 69 Relative Strength Rating and an 86 EPS Rating.
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