Kohl’s shares surge on takeover interest from Sycamore, Acacia

Kohl’s shares surge on takeover interest from Sycamore, Acacia





A source said on Sunday Sycamore was willing to pay at least $65 per share, implying a 39% premium to the last closing price. Starboard Value-backed Acacia Research last week offered to pay $64 a share.

Kohl’s confirmed on Monday it had received letters expressing takeover interest, adding the board would take action that is in “the best interests of the company and its shareholders.” It did not name the suitors.

Activist investors such as Macellum Advisors and Engine Capital, unhappy with Kohl’s performance, have also urged it to explore options, including a sale.

Like rivals Macy’sNordstromLVMHSephoraPVHCalvin Klein

Engine, which owns around 1% of Kohl’s, on Monday urged the retailer to “aggressively pursue” a buyout offer with a 37% premium, referring to Acacia’s offer.

A few analysts said Kohl’s, which has a market capitalization of $6.52 billion, could fetch a higher valuation.

“KSS is a strong FCF (free cash flow) generator, and it doesn’t seem to be getting credit by the market, making it reasonable to consider offers,” Citi’s Paul Lejuez wrote in a note.

It could warrant a per-share value of $70 to $80, Credit Suisse’s Michael Binetti wrote in a note.
Shares were on course for their best day ever, with the news also pushing rivals Macy’s and Nordstrom higher.

However, UBS

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