Key Takeaways
- Arkhouse Management has launched a proxy fight for Macy’s after the retailer rejected the activist investor’s offer to buy the company.
- Macy’s said real estate private equity investment firm Arkhouse has nominated nine people for board seats, to be voted on by shareholders at the company’s annual meeting.
- Macy’s said no to a December $21-per-share bid by Arkhouse and partner Brigade Capital Management, saying the potential buyers didn’t provide enough information about financing.
A proxy fight is underway for control of Macy’s Inc. (M).
The retailer announced Tuesday that activist investor Arkhouse Management Co. nominated nine people for seats on its board, to be voted on by shareholders at Macy’s 2024 annual meeting.
A date for the annual meeting hasn’t been set.
The move came after the company rejected a $21-per-share offer in December by Arkhouse and its partner, Brigade Capital Management, to take Macy’s private.
The company said that following the bid, the potential buyers didn’t provide information requested by the board about their ability to finance the deal. Subsequently, the board decided the proposal “was not actionable and lacked compelling value.”
Macy’s went on to explain that after saying no, executives reached out again for clarity, only to be rebuffed. It added in a press release that “Arkhouse and Brigade have yet to provide any financing details that would enhance the actionability of their proposal,” and have chosen a proxy fight instead.
Last month, Arkhouse Managing Partners Gavriel Kahane and Jonathon Blackwell argued that investment firm Jefferies Group, which is advising Arkhouse on the Macy’s offer, “has provided a highly confident letter supporting our ability to raise the necessary funds for the transaction.” They noted that while they have confidence in the long-term success of Macy’s, they believe “that its potential will only be realized as a private company.”
Shares of Macy’s fell Tuesday on the news, off more than 1% at $19.23 at 2:17 p.m. ET, and are 7.7% lower over the past year.
TradingView