Kohl's is said to get $9B bid from Starboard Value consortium

Jan. 21, 2022 10:40 PM ETKohl's Corporation (KSS), ACTGBy: Joshua Fineman, SA News Editor48 Comments

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  • A group backed by activist hedge fund Starboard Value is said to have made a $9B offer to purchase department store chain Kohl's Corp. (NYSE:KSS).
  • A group led by Acacia Research Corp. (NASDAQ:ACTG), which Starboard controls, offered to acquire Kohl's (KSS) for $64/share today, according to a WSJ report. The group told the retailer it had assurances from bankers that they would be able to get financing for a transaction.
  • The $64/share bid, which represents a 37% premium to Kohl's closing price today, comes after Reuters reported earlier this week that Acacia Research (ACTG), backed by activist Starboard, contacted Kohl's about interest in a potential bid for the retailer.
  • There's no guarantee that the Starboard consortium will get the financing for a deal or that Kohl's will accept the offer, according to the WSJ report. Other possible bidder could also appear.
  • The reports come as Kohl's holder Macellum Advisors is pushing for changes at the department store chain, including a sale or board changes.
  • The Macellum push also comes after activist fund Engine Capital last month sent a letter to Kohl's, pushing the department store chain to sell itself or to separate its e-commerce business.
  • Last month, TheDeal.com reported that Oak Street Real Estate is said to have expressed interest in purchasing the department store chain's real estate. The real estate may be worth between $6B and $7B. There's a possibility that Sycamore Partners could have interest in Kohl's.
  • Earlier this week, TheDeal.com also reported that Kohl's is sad to have retained Goldman Sachs following an activist push from Marcellum Advisors.

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