Macy’s: Raised Offer Should Be Considered; Shares Attractive

On March 3, Arkhouse Management and Brigade Capital issued a press release to announce that they have raised their per share bid for Macy’s to $24 from $21. In addition, they revealed that Fortress Investment Group and One Investment Management have joined the bid as equity capital partners. After this release, Macy’s issued a press release of its own that confirmed its receipt of the revised offer and stated that its board would “review and evaluate” it. Conspicuously, it did not commit to engaging with the investors or granting due diligence information, as has been requested. Over the past several weeks, Macy’s board has argued that the original offer was too low and that the financing was uncertain. Now that the investment group has raised its bid by 14% and announced additional equity partners, these concerns seem unjustified.