Kohl’s shares are set to surge Monday morning as the department store chain is reportedly fielding interest from two suitors at the same time that it’s grappling with multiple activist investors pressuring it to sell.
The latest potential takeover offer came Sunday from Sycamore Partners, two days after another bidder emerged with a $9 billion bid backed by hedge fund Starboard Value LP.
According to multiple reports, Sycamore is willing to pay at least $65 per share for Kohl’s. The price would represent a 39 percent premium to the stock’s last close of $46.84.
Acacia Research, backed by activist investment firm Starboard Value, offered to pay $64 a share for Kohl’s, according to reports.
Kohl’s shares were jp more than 26 percent in premarket trading Monday,
According to CNBC, Acacia and Starboard will likely partner with Oak Street Real Estate Capital to explore Kohl’s real estate sale to raise more money.
Kohl’s has opposed such sale-leaseback deals in the past.
In recent weeks, Kohl’s also has been facing pressure from activist investors Macellum Advisors and Engine Capital to improve its business and boost its stock price. Both have urged Kohl’s to explore strategic alternatives, including a sale. Macellum owns 5 percent of Kohl’s stock, while Engine Capital owns about 1 percent.
Kohl’s responded by saying its strategy is working. It pointed to growing sales and profitability in the fiscal third quarter and the launch of new initiatives, including Sephora shops inside of its stores and its push to expand activewear. It’s also said it’s open to further discussions with investors.
Last April, the department store chain reached a deal with activist investors, including Macellum, agreeing to add two of its nominees to Kohl’s Board as independent directors.
