Arkhouse has the financing in place to take Macy’s non-public at a bid of $5.8 billion, managing partner Gavriel Kahane advised CNBC Thursday, however the activist investor has run into roadblocks with out the division retailer retailer’s cooperation on due diligence.
“At this stage, based mostly on public data, there is not a financial institution in the world that will offer you dedicated financing, and that is simply par for the course,” Kahane stated on CNBC’s “Money Movers.” He added that administration’s response in the approaching days and weeks would decide how Arkhouse moved ahead.
Arkhouse has beforehand stated it will take “all obligatory steps” to amass Macy’s, together with going on to shareholders.
Kahane’s Arkhouse and Brigade Capital submitted an unsolicited bid to Macy’s administration in December to take the corporate non-public at $21 a share, a premium of greater than 32%. Investment financial institution Jefferies has offered a extremely assured letter, Arkhouse has beforehand stated, which means the financial institution believes the 2 companies will have the ability to elevate the capital obligatory to shut the deal.
Arkhouse additionally stated it may elevate its bid above the unique $21-per-share supply, however provided that the Macy’s administration was prepared to signal a mutual non-disclosure settlement and allow diligence to start.
Macy’s board rejected that offer on Sunday, saying in half that it believes it’s “extremely unlikely” Arkhouse and Brigade’s proposed financing “might be efficiently executed.” It additionally refused to enter into a non-disclosure settlement or allow diligence to maneuver ahead, with CEO and chair Jeff Gennette saying in a letter to Arkhouse and Brigade that “such an train would unnecessarily distract our administration staff.”