Michael M. Santiago
The possibility that Macy’s (NYSE:M) agrees with the group of investors following the department store chain, according to a JPMorgan credit analyst.
Arkhouse Management and Brigade Capital Management raised an offer of $24 per share, Macy’s “softer tone” towards The rejection and potential financing package are reasons why a transaction could have a higher probability, JPMorgan credit analyst Carla Casella wrote in a note Wednesday after meeting with the investor group and some of its financing partners in New York City.
“To be clear, the potential buyers have not yet disclosed “committed” financing, as is customary given they have not had a chance to do formal due diligence, but their ideas about financing seemed conservative and realistic to us,” Casella, which rates Macy’s (M) bonds are neutral, the note said.
Following news of the bid increase on Sunday, Macy’s (M) said its board will “carefully review” and evaluate the latest proposal in consultation with its financial and legal advisors.
In December the investor group offered $21 per share, or $5.8 billion for Macy’s, which the retailer rejected. Macy’s (M) said last month it had received notification from Arkhouse that the investor had nominated nine people to stand for election at the 2024 annual meeting.