Kohl’s Rejects Takeover Offers as Too Low and Hires Bankers – Business of Fashion

Kohl’s Corp. said Friday it has rejected the takeover offers it has received as too low and has engaged bankers to field interest in the company.

Both Sycamore Partners and a suitor backed by hedge fund Starboard Value LP had engaged with Kohl’s about a potential deal amid activist investor pressure to sell, Bloomberg News has reported. While it’s unclear how much Sycamore was willing to pay for Kohl’s, Acacia Research Corp., the Starboard-backed suitor, had offered $64 a share, or about $9 billion. That worked out to a premium of more than 30 percent to where Kohl’s was trading in mid-January before shareholder Macellum Advisors renewed a push for the company to consider a sale.

The bids undervalued the company’s future growth and cash flow generation, Kohl’s said in a statement. The retailer has designated a board committee to review future offers and engaged financial advisers, including Goldman Sachs Group Inc. and PJT Partners Inc., to interact with interested parties. The company also adopted a so-called poison pill that will make it harder for the company to be acquired without the consent of the board.

Shares of Kohl’s rose 1.6% percent to $59.50 at 9:59 a.m. in New York.

The company’s directors are “committed to acting in the best interest of shareholders and will continue to closely evaluate any opportunities to create value,” Chairman Frank Sica said.

A representative for Sycamore declined to comment. Representatives for Macellum and Acacia weren’t immediately available for comment.

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