Why Kohl's Stock Popped Today
Shares of Kohl's (NYSE: KSS) jumped 8.2% on Tuesday, after the department store chain said it was conducting exclusive acquisition negotiations with Franchise Group (NASDAQ: FRG).
The talks are scheduled to occur over three weeks. Franchise Group intends to use this time to complete its due diligence and arrange financing for the transaction. As it stands, Franchise Group is offering to buy Kohl's for $60 per share, or roughly $8 billion, though the companies stressed that a deal might not be completed.
Under the terms of the agreement, Franchise Group would take on $1 billion in debt to help fund the transaction. The remaining financing would be obtained by leveraging the real estate assets that Kohl's holds.
Source Fool.com
