According to Proactive Investors, Macy’s may have received a $5.8bln buyout offer

Private equity firms Arkhouse and Brigade Capital have reportedly made a $5.8 billion buyout offer to US department store Macy's, Inc.

The $21 per share offer, which is still pending, is 21% above Macy's Friday closing price, indicating that private investors think the chain is undervalued in the eyes of the public.

Macy's stock jumped as much as 22% to $21.15 in pre-market trading on Monday after news of the takeover offer surfaced, but it later dropped back to $19.6.

It follows Macy's announcement in November of better-than-expected margins and a smaller-than-expected decline in sales.

The company exceeded profit projections in the third quarter despite a 7% decline in same-store sales, demonstrating resilience in a difficult retail climate.

Macy’s, well-known for its yearly Thanksgiving Day Parade in New York City, has long been an integral part of American culture.

The timing of the takeover offer is especially significant because it comes as Macy's is getting ready for a change in leadership.

(Sources: proactiveinvestors.co.uk, wsj.com)