- Department store stocks are higher after Nordstrom (JWN +6%) is reported to be working on a go-private deal.
- The Nordstrom family is said to be talking to banks about raising debt to finance the deal. Cowen rates the odds of go-private deal hitting the finish line at 60% to 70%. "Confidence and strategies focused on long-term execution plus good long-term visibility into a stabilizing and growing cash flow scenario drives higher likelihood of a deal occurring and securing outside equity," writes analyst Oliver Chen.
- Sector snapshot: J.C. Penney (NYSE:JCP) +2.52%, Dillard's (NYSE:DDS) +2.24%, Kohl's (NYSE:KSS) +1.34%, Macy's (NYSE:M) +1.04%.
- Previously: Nordstrom +8.2% on report it's nearing go-private deal (Sept. 12)