Macy’s Inc. shares soared early Monday after a report that an investor group is seeking to buy the department-store chain for nearly $6 billion and take it private.
Arkhouse Management and Brigade Capital Management have submitted a $5.8 billion bid to acquire the Macy’s stock they don’t already own for $21 a share, a 32% premium over Friday’s closing price of $17.39, the Wall Street Journal reported on Sunday.
Macy’s shares rose nearly 20% in premarket action.
The investors believe Macy’s
M,
is undervalued and have already discussed their offer with Macy’s board, the Journal reported on Sunday.
Macy’s and Arkhouse declined to comment Sunday. Brigade did not immediately respond to requests for comment.
In November, Macy’s reported a surprise third-quarter profit and beefed up its outlook, as margins improved and inventory fell.
Macy’s shares have surged more than 50% in the past month, but are still down about 16% year to date. The stock peaked at about $70 a share in 2015.
Barbara Kollmeyer contributed to this report
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