Kohl’s shares are up 15% on Wednesday: explore why

by
0 comment

Kohl’s Corporation shares (NYSE: KSS) are up more than 15% this morning on reports that two new buyers have lined up to bid for the largest U.S. department store chain.

Hudson’s Bay, Sycamore considering an offer to buy Kohl’s

According to the Wall Street Journal, Canada-headquartered Hudson’s Bay might be interested in buying Kohl’s at high $60s per share. Citing several anonymous sources, it also disclosed Sycamore Partners as a potential bidder as well.

Both Hudson and Sycamore, however, are yet to make an official comment on the news, responding to which in an email statement, Kohl’s spokeswoman said:

As previously disclosed, the board’s engagement with potential bidders is robust and ongoing. The board will measure potential bids against a compelling standalone plan and choose the path that it believes maximises shareholder value.

Activist: Kohl’s long-term targets were disappointing

The reports come shortly after Kohl’s rejected $64 a share proposal from Acacia Research, citing undervaluation.

CEO Michelle Gass revealed updated financial targets for the longer-term last week that Engine Capital on Wednesday said were “extremely” disappointing. In a letter to Kohl’s board, the activist investor wrote:

It’s imperative for the Board to reassess its view of Kohl’s intrinsic value. We remain concerned that the Board may reject a final offer based on a misguided and unrealistic conclusion that it undervalues Kohl’s.

The post Kohl’s shares are up 15% on Wednesday: explore why appeared first on Invezz.

Related Posts