The bidding process for Kohl’s (NYSE: KSS) doesn’t seem to be coming to a close any time soon. According to a person familiar with the matter, it may take at least several weeks, to finalize.
“Anyone who purchases the business will require time,” said the individual, who mentioned secrecy in light of the fact that the conversations are private and continuous. “No one is ready to sign an arrangement at the present time.”
Negotiations have been prolonged amid the difficulty in securing financing within the current market, the person claimed. Furthermore, they stated that the likely share deal price will fall anywhere in the mid-$50s.
On Friday, Kohl’s shares closed at USD41.48, amounting to a market value of approximately USD5.3 Billion. On May 24, the stock traded as low as USD34.64.
The retailer had previously rejected an offer from Starboard-supported Acacia Research, at USD64 a share, valuing Kohl’s at USD9 Billion. According to Brian Quinn, a teacher at the Boston College Law School, the company likely regret’s not taking the deal while it had the chance.
“The stock value that they thought inside they could perhaps hit, that no longer looks sensible,” he said. “That’s what my estimate is assuming you had told the board [at Kohl’s] what might occur in the commercial center in April and May, they would have sold the organization.”
“However, indeed, no one knew what was to come planned to bring,” he added.