Hudson’s Bay, owner of Saks Fifth Avenue, is contemplating submitting a bid for Kohl’s Corp (NYSE: KSS), according to Axios. Kohl’s shares rose 5% during early morning trading amid the news. Both companies have yet to comment on the matter.
Kohl’s has already turned down two separate takeover bids this year. However, it is in talks with over 20 parties and has signed confidentiality agreements with various of those in order to provide further financial data.
According to the company’s recent guidance, Engine Capital LP asked management to contemplate the sale or the split of the e-commerce division. Furthermore, an investor presentation on March 1 highlighted its “underwhelming growth.”
“We believe it is imperative for the Board to reassess its view of the Company’s intrinsic value,” the group said. “It is our understanding that Kohl’s is finally running a competitive sale process months after we urged the Board to do so.”
“We urge the Board to let shareholders make the ultimate assessment about a sale of Kohls. The Board and management have overseen so much value destruction over the years that we believe it is emotionally and financially conflicted to make that assessment,” Engine Capital said. “The best offer, whether it be $65 per share or hopefully higher, should be negotiated and put in front of shareholders for a vote so that the Company’s true owners can decide whether the offer is appropriate.”
The retailer’s stock has risen 14% throughout the year and has a current market cap of USD7.91 Billion.