Kohl's jumps on report bidders may be willing to pay as much as $62/share

May 25, 2022 10:09 AM ETKohl's Corporation (KSS)ACTG, SPG, BAM, FRG, BAM.A:CABy: Joshua Fineman, SA News Editor43 Comments

Kohl"s Department Stores Receives Unsolicited Bid From Hedge Fund Starboard Value LP

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Kohl's Corp. (NYSE:KSS) soared 13% on a report that potential bidders are planning to make binding offers that are lower than their original bids for the department store chain. Some bidders indicated they may be willing to make offers for much as $62/share, according to a Reuters report.

Sycamore Partners, Franchise Group (FRG) and Simon Property (SPG) and Brookfield Asset Management (BAM) plan to make offers that are at least 10% to 15% below their original bids, according to Reuters. Starboard Value-backed Acacia Research (ACTG) is also evaluating its options after making a $64/share offer in January that was rejected.

Real estate firm Oak Street Real Estate Capital is expected to offer financing for potential buyers, according to the Reuters report. Best and final offers were originally due at the end of the month, though bidders may now have an additional two weeks.

The Reuters report appears to refute a CNBC item from Friday that the main potential bidders for KSS are said to be on the sidelines because they are having trouble getting financing for a deal. A deal can't get financing in the $60s/share. The lenders are said to not have confidence in Kohl's numbers after company reported its Q1 results last Thursday.

The CNBC report followed a NY Post item late Thursday that the department store chain's Q1 results may dissuade potential suitors from making offers.

Kohl's last Thursday said it expected “fully-financed final bids to be submitted in the coming weeks.” The activist pushing for the company to sell itself was dealt a blow earlier this month when Kohl's holders rejected all of Macellum's 10 board nominees.

Earlier Wednesday Kohl's outlined new store strategies including more Sephora, smaller units.

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