Kohl's (NYSE:KSS) rose 5.4% in premarket trading on a report that Franchise Group (NASDAQ:FRG), owner and operator of retail stores including The Vitamin Shoppe, is involved in a bidding war for the retailer with a $9 billion offer.
Franchise Group has told Kohl's (KSS) it would be willing to pay as much as $69/share, according to a Reuters report, which cited people familiar. Franchise Group is not the highest offer as Hudson's Bay has indicated it's willing to spend at least $70/share for Kohl's.
Franchise Group has a market cap of $1.6 billion and long-term debt of $1.9 billion as of the end of December. A potential deal for Kohl's would mainly be dependent on the backing of investment firm Vintage Capital Management, according to Reuters.
A consortium backed by private equity firm Leonard Green, which includes Authentic Brands, has also made an offer for Kohl's, Reuters reported.
Last month, the NY Post reported that Hudson's Bay, the owner of Saks Fifth Avenue, is likely the front-runner in the bidding war for Kohl's. The retailer is expected to make a decision at its May 11 annual meeting.