Macy’s (NYSE:M) stock is falling on Monday after the retailer called off talks of a deal that would have taken shares of M private.
Macy’s revealed in a press release today that it is no longer moving forward with negotiations to take the company private. It was previously working with Arkhouse Management and Brigade Capital Management on the deal.
Macy’s says the negotiations were shut down by its board as the two investment firms failed to create an actionable proposal. Instead, the board will focus on enhancing shareholder through the company’s “A Bold New Chapter” plan.
Paul Varga, lead independent director at Macy’s, said the following about the news:
“As the Board has consistently demonstrated throughout this process, we are open-minded to exploring all paths to enhancing shareholder value. At this time, after careful review, we have concluded that Arkhouse and Brigade’s proposal lacks certainty of financing and does not deliver compelling value, notwithstanding the significant time, resources, and information shared during this process.”
How This Affects M Stock
M stock investors aren’t reacting well to today’s news with the company’s shares down 12.5% as of Monday afternoon. The stock is currently down 15.5% since the start of the year.
With this fall comes heavy trading of M stock. That has more than 15 million shares changing hands as of this writing. For comparison, the company’s daily average trading volume is about 4.8 million shares.
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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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
