A woman shops for jewellery at a Kohl’s department store.FREDERIC J. BROWN/AFP/Getty Images
Kohl’s shares jumped 34% on Monday following a report of interest by Sycamore Partners in the retailer. Kohl’s last week reportedly received a $9 billion buyout bid from Acacia Research. The clothing and housewares retailers has been under pressure to improve shareholder value. Kohl’s shares soared by more than a third Monday after the retailer reportedly received a takeover bid from private equity firm Sycamore Partners, which would mark the second reported buyout offer in a week.
Shares surged 34% to $62.90 in heavy premarket trade after Bloomberg on Sunday reported Sycamore Partners reached out to Kohl’s about a deal. The report, citing people familiar with the matter, said it wasn’t clear how much Sycamore would be willing to pay for that transaction.
The report noted Sycamore has experience in purchasing retailers, including the 2017 buyout of Staples.
The report follows last week’s Wall Street Journal article reporting that Acacia Research offered to buy Kohl’s for $64 a share in cash, representing a bid of roughly $9 billion. Acacia Research is controlled by Starboard Value, an activist hedge fund. Acacia told Kohl’s it received a “highly confident” letter from a bank stating it will be able to attain a debt-financing package for a portion of its bid, the Journal reported, citing sources.
Reuters earlier last week reported that Kohl’s was in talks with Acacia about a bid.
Kohl’s has undertaken a turnaround plan in an effort to improve shareholder value. Wall Street activist investors in recent weeks have put pressure on Kohl’s to sell or make major changes to the company.