Activist Investor Arkhouse Reconsiders Macy's Takeover Bid — Here's What Lies Ahead

The activist investor who previously proposed a $6.9 billion buyout offer for Macy’s Inc. (NYSE:M) is reportedly considering a new takeover bid. This comes nearly a year after Macy’s rejected the initial offer.

What Happened: Arkhouse, in collaboration with Brigade Capital Management, made the initial bid on July 15, 2024. Despite the offer being more than double Macy’s current share price, the retail giant declined the proposal.

Arkhouse’s managing partner, Gavriel Kahane, has expressed ongoing disappointment over the rejection. While he did not reveal the size of Arkhouse’s current stake in Macy’s, he did not rule out the possibility of a new takeover bid.

“Macy’s is still publicly traded, still mispriced, and still in desperate need of someone coming in to save shareholders,” Kahane told Yahoo Finance.

At the time of the initial bid, Macy’s CFO Adrian Mitchell found the offer “not compelling” in light of Macy’s potential. The company chose to focus on its turnaround strategy under CEO Tony Spring instead.

Also Read: Proxy Fight Concludes, Yet Macy’s Future Remains In The Balance: Report

Macy’s is scheduled to report its first quarter earnings next Wednesday. Wall Street predicts a 3.65% decline in same-store sales and adjusted earnings per share of $0.14, along with revenue of $4.44 billion.

Why It Matters: The potential new takeover bid by Arkhouse comes at a crucial time for Macy’s. The company is in the midst of a turnaround strategy under CEO Tony Spring, focusing on improving its financial performance.

The rejection of the previous bid indicates Macy’s confidence in its potential and strategic plan. However, the ongoing interest from Arkhouse suggests that external parties still see value in the company and believe they can unlock it.

The outcome of this situation could have significant implications for Macy’s future direction and shareholder value.

Image: Shutterstock/NYC Russ