Shares of US staple retailer chain Kohls (NYSE: KSS) shot up over 14% in mid-market trading on Wednesday, after rumors surrounding a potential buyout surfaced. Reports dictate that the popular store chain is under the keen eye of the Canadian department store chain Hudson Bay; who is apparently considering a sizeable bid for the company.
It isn’t just Hudson Bay who are interested though, private equity firm Sycamore Partners is apparently also considering a high-value bid; but no intention has been guaranteed.
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The most recent report outlines that Sycamore and Hudson Bay were planning bids priced around the high $60s per share, giving a rough valuation of Kohls standing at more than $9B. Following the report, shares of Kohl’s soared to above $60 levels with a more than 14% jump.
The report is definitely more than rumors; a Kohl’s spokesperson claimed that the “board’s engagement with potential bidders is robust and ongoing”, meaning that although interest has been registered, nothing is firmly in place moving forward.
Sycamore and Hudson Bay have not been the first to register interest in the popular retail chain; Acacia Research’s offer of $64 per share was deemed too low, giving some indication of what management is looking for – so far the company has entered talks with around 20 interested parties, but is still yet to find the right buyer.
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Oliver is a financial writer and analyst specialising in the US stock market, with years of personal experience in understanding micro/macroeconomic structures, market trends and fundamental analysis.