The Kohl's Bidding War Gets Serious

Buyout speculation has swirled around Kohl's (NYSE: KSS) this year, encouraged by a pair of activist investment firms that are frustrated with the stock's subpar returns. However, Kohl's quickly rejected the initial offers it received, saying that they undervalued the company.

Now, though, the likelihood of a successful deal appears to be rising. At least four potential acquirers are circling Kohl's, which could spark a bidding war that would drive up the deal price to a level that the retailer's board can't turn down.

Acacia Research -- an affiliate of hedge fund Starboard Value -- was the first Kohl's suitor to emerge in 2022. In January, it reportedly offered to buy the department-store giant for $64 per share. Within days, private-equity firm Sycamore Partners expressed a willingness to beat Acacia's bid with an offer of at least $65 per share.

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Source Fool.com