(Reuters) -Canadian retailer Hudson's Bay, the owner of Saks Fifth Avenue, is considering a bid for U.S. department store operator Kohl's Corp, Axios reported on Wednesday, citing sources.
March 16, 2022
(Reuters) -Canadian retailer Hudson’s Bay, the owner of Saks Fifth Avenue, is considering a bid for U.S. department store operator Kohl’s Corp, Axios reported on Wednesday, citing sources.
Shares of the company, which is facing pressure from activist investors to sell itself, rose about 7% to $57.58, valuing the company at about $8 billion.
Kohl’s rejected two separate takeover bids earlier this year, but said this month that it was in touch with more than 20 parties and has provided some of them access to more financial data.
“The board will measure potential bids against a compelling standalone plan,” Kohl’s said in an emailed statement on Wednesday, adding the engagement with potential bidders was “robust and ongoing”.
Hudson’s Bay did not respond to a Reuters request for comment.
Kohl’s had rejected the between $64 and $65 per share buyout offers from Sycamore Partners and Starboard Value-backed Acacia Research that valued the company at around $9 billion.
Activist investors Macellum Advisors GP LLC and Engine Capital LP have both called on the company to sell itself.
Last month, Kohl’s adopted a shareholder rights plans to protect itself from hostile takeovers.
Hudson’s Bay was taken private by its chairman, Richard Baker, in 2020.
(Reporting by Ananya Mariam Rajesh and Praveen Paramasivam in Bengaluru; Editing by Anil D’Silva)
