Arkhouse Management has nominated nine people for the new Macy’s, Inc. (M) board of directors. This move, which is stirring up a proxy storm, comes after the rejection of the $5.8bn takeover bid. Arkhouse and Brigade Capital Management reportedly offered $21 for every share that they do not own.
Arkhouse chasing a Macy’s board majority
After reviewing the offer, the current Macy’s board expressed concerns about financing solutions for the proposed takeover. The company reportedly approached the two investors about providing additional financing information. Macy’s said that instead of complying with its request, Arkhouse and Brigade sent a communication requesting a 10-day extension for board nominations.
The Associated Press quoted a Macy’s statement, in which the company commented:
Arkhouse and Brigade have yet to provide any financing details that would enhance the actionability of their proposal despite multiple opportunities to do so, and instead of attempting a constructive dialogue, Arkhouse has chosen to launch a proxy contest.
Arkhouse has not offered any comment as yet. Based on a Bloomberg report, Arkhouse is seeking a nine-seat majority on the 14-member Macy’s board. This majority can approve the intended takeover. Macy’s maintained that its current board is representative and experienced. The company’s nominating and corporate governance committee will evaluate the board nominations. Macy’s must still set a date for its annual general meeting.
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Recent company restructuring included cutting the jobs of about 2,350 employees and announcing the closure of five locations. Macy’s current market cap is around $5.3bn, and it opened Tuesday, 20 February 2024 trading at $19.26 per share.
