- Kohl’s (NYSE:KSS) is rising on reports of a deal getting closer.
- The retail company has been searching for a buyer for months now.
- Reports claim new offers are lower than initial ones.
Kohl’s (NYSE:KSS) stock is rallying higher on Wednesday as investors react to an update about the company’s plan to sell itself.
According to recent reports, Kohl’s is moving forward with these plans and is close to signing binding agreements with bidders. The exact details of the deal are still unknown, but insiders claim the bids are 10% to 15% lower than the initial ones made.
That makes sense considering the current state of the economy. Inflation continues to weigh on the minds of consumers and that’s having an effect on retailers. Several have already cut guidance in preparation for weakened demand this year, CNBC notes.
Even with these concerns, Kohl’s appears to be doing well with the offers it’s getting. It previously turned down one for $64 per share as too low. Now, the current reports claim that some bidders are willing to offer $70 per share for KSS stock. For the record, the company’s shares were trading at $36.18 when markets closed on Tuesday.
Today’s news is doing wonders for KSS stock as heavy trading pushes shares higher. As of this writing, more than 7 million shares of the company’s stock have changed hands. To put that in perspective, its daily average trading volume is closer to 3.4 million shares.
KSS stock is up 16.1% as of Wednesday morning. However, it’s also down 15.5% since the start of the year.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.