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The group is now offering $24 in cash per Macy’s share, up from its earlier offer of $21 per share, it said in a press release late on Sunday. The offer represents a 33% premium to Macy’s close on Friday, and values the chain at about $6.6 billion. Arkhouse said that the group was open to further increasing the takeover price.
Macy’s said in a statement on Sunday that its board will review the new proposal.
The increased offer is the second after a previous bid was rejected in November. It also comes after Macy’s announced a major restructuring drive that will see the firm slash costs, reduce inventory, and shutter 150 stores over the next three years.
“While the restructuring plan Macy’s unveiled last week failed to inspire investors, the fourth quarter earnings and year-end results have given us further confidence in the long-term prospects of the Company if redirected as a private company,” Gavriel Kahane and Jonathon Blackwell, Arkhouse managing partners, said in a press release.
Arkhouse had nominated nine director candidates for Macy’s board after the initial offer was rejected. Macy’s board, meanwhile, signaled that it was prepared for a proxy fight.
The legacy retailer has been struggling to retain shoppers during a time of rising pressure from shifting consumer trends, particularly away from luxury items and more towards online shopping.
Still, Macy’s surprised investors with a smaller-than-expected decline in its fourth-quarter earnings released last week.
Ambar Warrick contributed to this report.
