It is clear that Nordstrom (NYSE: JWN) will remain public now. The Special Committee of the Board of Directors of Nordstrom announced that it has terminated discussions with the Nordstrom family members regarding the take-private offer by acquiring the outstanding shares of the common stocks of Nordstrom.
The Special Committee took this action mainly because it could not reach agreement with the Group on an acceptable price for the Company.
Earlier this month, the Special Committee rejected the proposal from Nordstrom family group to purchase all of the outstanding shares of common stock of the company not already owned by the Group, and approximately 21% of the shares owned by the Nordstrom family members in the Group, for $50.00 per share in cash. However, Nordstrom stock has traded above the $50 for the past two months.
The family noted that this price represented a 24% premium over the stock's closing price on the day before the company first announced the potential go-private transaction last June. However, since the Special Committee has indicated that the $50-per-share offer is not even close to be adequate, this go-private plan is terminated now.