Shares of iconic department store chain Macy's (NYSE: M) are down 13.3% as of 12:01 p.m. ET today, according to data from S&P Global Market Intelligence, as acquisition talks with a pair of potential suitors have ended with no deal being made. For many investors, the prospect of a buyout was the last great hope for the struggling retailer.
The backstory behind today's tumble actually begins in December of last year, when real estate investing outfit Arkhouse Management and investment management firm Brigade Capital first jointly expressed interest in acquiring Macy's. That $5.8 billion ($21-per-share) offer was ultimately rejected, but then raised to $24 per share in March of this year. That bid was also rejected. But it did ultimately result in the addition of two new independent board members, both of whom continued to press for a sale. Arkhouse and Brigade raised their offer one last time early this month, valuing Macy's at $6.9 billion, rekindling discussions as a result. The parties still couldn't come to an agreement, however, prompting Macy's to announce on Monday morning it had terminated these discussions.
It's unlikely that Arkhouse and Brigade will regroup and make yet another higher offer.
Source Fool.com