Canadian department store chain Hudson’s Bay Co is bidding for American peer Kohl’s Corp, a source familiar with the matter told Reuters.
Shares of the U.S. retailer, which is facing pressure from activist investors to sell itself, rose as much as 17% to $62.98, valuing the company at about $8.76 billion.
The Wall Street Journal on Wednesday reported, citing people familiar with the matter, that private equity firm Sycamore Partners and Hudson’s Bay were planning bids in the high $60s per share.
Kohl’s has asked suitors to submit offers by Wednesday, the report said. It added that the company has indicated it believed it was worth over $70 per share, citing one of the people.
Sycamore Partners declined to comment.
Kohl’s had previously rejected two buyout offers, valuing it at between $64 and $65 per share, from Sycamore and Starboard Value-backed Acacia Research. But Kohl’s said this month that investment bank Goldman Sachs spent January, February and March talking to more than 20 parties, adding it had provided a few of them access to more financial data.
Axios was the first to report that Hudson’s Bay was considering a bid for Kohl’s.
“The board will measure potential bids against a compelling standalone plan,” Kohl’s said in an emailed response on Wednesday, adding the engagement with potential bidders was “robust and ongoing”.
Saks Fifth Avenue parent Hudson’s Bay Co is owned by HBC.
Source: Reuters.com