Macy's: discussions with Arkhouse and Brigade abandoned

(CercleFinance.com) - Macy's fell back sharply on the New York Stock Exchange on Monday, after it was announced that Arkhouse and Brigade Capital had abandoned discussions with a view to its takeover.


At 10.15 a.m. (Wall Street time), the American department store chain's share price was down more than 14%, bringing its annual score back into the red, with a drop of more than 5% since January 1.

In a press release, the New York-based group explained that, after more than seven months of negotiations and examination of its accounts, Arkhouse and Brigade had finally formulated a purchase offer of $24.80, a price outside the range that the Macy's Board of Directors had indicated to Arkhouse and Brigade could be considered acceptable.

Macy's added that the financing of the transaction appeared to be 'highly conditional' and subject, in some cases, to due diligence by Arkhouse and Brigade themselves.

Following the failure of these discussions, the group says it now wants to focus on its strategic plan, dubbed 'A Bold New Chapter', which should include an acceleration in luxury goods and a simplification of its activities.

Macy's is due to publish its quarterly results at the end of August.

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