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Department store chain Kohl's Corp. (NYSE:KSS) gained 2.7% even after the company initially rejected multiple unsolicited bids as being too low. The company also adopted a limited-duration poison pill that expires Feb. 2, 2023.
Kohl's said that the "valuations indicated in the current expressions of interest which it has received do not adequately reflect the company’s value in light of its future growth and cash flow generation," according to a statement.
The Kohl's comments come after reports that Sycamore Partners offered to buy the company for at least $65/share, above the $64/share that's reportedly been offered by a consortium led by Starboard Value and Acacia Research Corp. (NASDAQ:ACTG).
Kohl's (KSS) said its board designated its finance committee to lead the ongoing review of any expressions of interest. The company and the board have also engaged financial advisors, including Goldman Sachs and PJT Partners, and have asked Goldman Sachs to engage with interested parties.
The bids came after activists including Macellum Advisors and Engine Capital were pushing for the department store chain to explore a sale.
Last week, Kohl's may see $70-$95/share takeout price in a bidding war and Kohl's may be worth $70-$80/share in a competition, analysts say.