Kohl's jumps on report Hudson's Bay, Sycamore preparing bids in high $60s (update)

Mar. 16, 2022 4:10 PM ETKohl's Corporation (KSS)ACTGBy: Joshua Fineman, SA News Editor12 Comments

Kohl"s store front

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Update 4:10pm: Updates with NY Post report on other bidder, specifics of offers, updates shares.

Kohl's Corp. (NYSE:KSS) rose 17% on a report that Hudson's Bay and private equity firm Sycamore are preparing bids for the department store chain above $9B, according to media reports.

Sycamore and Hudson's Bay, the the owner of Saks Fifth Avenue, plan to offer in the high $60s for Kohl's, which asked potential buyers to submit bids by Wednesday, according to a WSJ report. KSS has told possible buyers that the company is worth over $70/share. Axios earlier reported that Hudson's Bay was considering a bid.

Leonard Green is also expected to submit a bid for Kohl's, according to a NY Post report. The new offers are for between $67 and $69.

The reports come after Kohl's last month rejected offers from Sycamore Partners and a $64/share bid from a consortium led by Starboard Value and Acacia Research (NASDAQ:ACTG). NYT's DealBook also reported last month that PE firm Leonard Green is said interested in bidding for the department store chain.

The latest speculation comes as activist Macellum Advisors is engaged in a proxy battle with the retailer and has urged the company to sell itself, especially after receiving interest from private equity firms. The activist firm has said it's convinced that a majority of the Kohl's (KSS) board needs to be refreshed after it hastily rejected at least two potential acquirers last month.

Kohl's disclosed earlier this month that Kohl's (NYSE:KSS) disclosed that its advisor Goldman Sachs has engaged with a number of private equity, strategics and real-estate focused investors regarding a range of potential strategic alternatives from January through March.

Earlier this month, Kohl's updated long-term strategies at investor event.

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