NY Post says Macy’s buyout rumors untrue
According to a story in today’s NY Post, by Zachery Kouwe and Suzanne Kapner, there is no deal in the works to buy Macy’s. The Post report, which was attributed to “multiple sources with knowledge of the situation”, said that while KKR has seriously studied a bid for Macy’s, the buyout firm is not working with Goldman Sachs, and the department store’s board of directors, along with its management team, are not working on, or considering, a deal at this time.
According to the Post, sources close to Macy’s said Chief Executive Terry Lundgren and the board believe the company is adequately capitalized and are halfway through their plan to boost shareholder value by repositioning the Macy’s brand.
In the meantime, it was a wild day for Macy’s shares on Wednesday with more than $1.3 billion in stock changing hands after a report in WWD about the possible deal with KKR. Shares reached a high of $45.50 and closed the day at $43.09.
Macy’s however, remains a likely target for a takeover. Yesterday, MRketplace Mergers and Acquisitions expert Allan Ellinger, of Marketing Management Group said that “Considering the state of private equity today, an eventual deal for Macy’s seems inevitable.”
