Macy’s took a big hit to its stock price on Monday with news that the US rental giant was terminating discussions with private equity firm Arkhouse Management and Brigade Capital Management over a potential takeover prompting a 13% fall, according to a report by Business Insider.
In a press release issued today, Macy’s revealed that it is no longer pursuing negotiations to take the company private with the retailer claiming the failure of the two investment firms to present a viable proposal. Instead, Macy’s said its board will refocus its efforts on enhancing shareholder value through its “A Bold New Chapter” plan.
Paul Varga, Macy’s lead independent director, said: “As the Board has consistently demonstrated throughout this process, we are open-minded to exploring all paths to enhancing shareholder value. At this time, after careful review, we have concluded that Arkhouse and Brigade’s proposal lacks certainty of financing and does not deliver compelling value, notwithstanding the significant time, resources, and information shared during this process.”
The announcement triggered a sharp decline in Macy’s stock, with shares dropping 12.5% by Monday afternoon, bringing YTD declines in the company share price to 15.5%.
