Macy's Stock Plunges After It Ends Arkhouse, Brigade Buyout Talks

After months of negotiation, Macy’s (M) connected Monday said it had ended talks pinch would-be buyers Arkhouse Management and Brigade Capital Management.

The announcement comes aft nan activist investors precocious upped their connection by astir $300 million to $6.9 billion.

The 2 companies initially presented Macy’s pinch a $21-per-share woody to return nan retailer backstage successful December, which nan committee rejected. That led Arkhouse and Brigade to launch a proxy fight that ended erstwhile Macy’s approved 2 committee members backed by nan investors, aft Arkhouse and Brigade came backmost successful March pinch a $24-per-share bid.

Macy's Deems Latest Offer 'Not Compelling'

Arkhouse’s latest connection went arsenic precocious arsenic $24.80, a 38.3% premium complete Macy’s closing value astatine nan time, but nan biggest U.S. section shop concatenation dismissed it arsenic “not compelling.”

“Rather than delivering a definitive, afloat financed and actionable proposal, Arkhouse and Brigade submitted a consequence they characterized arsenic a ‘check in’ missive expressing an liking successful acquiring each of nan outstanding shares of nan institution for $24.80 per stock successful cash, which is wrong a scope nan committee had antecedently communicated to Arkhouse and Brigade was not compelling,” Macy's said.

Shares of Macy’s plunged much than 13% to $16.55 arsenic of 11:15 a.m. ET Monday.