Kohl's Won't Accept Recent Takeover Bids

Monday, February 7th, 2022 -- 12:00 PM

(WMTV) Kohl’s will not accept recent takeover bids by a private equity firm and an activist hedge fund.

Its Board of Directors stated Friday morning that the offer felt short of the company’s true value. The statement indicated their determination was based on projections for future growth and the company’s ability to generate cash flow.

In late January, news broke that Sycamore Partners had approached the Menomonee Falls, Wisconsin, based retailer about a potential deal. “We have a high degree of confidence in Kohl’s transformational strategy, and we expect that its continued execution will result in significant value creation,” Kohl’s Chairman Frank Sica said.

Days before that, a group backed by activist hedge fund Starboard Value LP reportedly bid $64 per share or about $9 billion. Those reports sent share prices for the retail giant soaring, rising 30 percent in early trading after the Sycamore proposal was confirmed.

CNBC reported Friday that Kohl’s stock slipped about two percent in overnight trading. While the Board of Directors rejected the proposals it received so far, their statement did not close the door on a potential sale.

“The Board is committed to acting in the best interest of shareholders and will continue to closely evaluate any opportunities to create value,” Sica added.

To that end, the board tasked its Finance Committee, which is made up of independent directors, to review any bids as they come in. It also signed on Goldman Sachs and PJT Partners to serve as financial advisers.

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