Published: Sat, February 04, 2017
Research | By Francis Brooks

Macy's-Hudson's Bay talks in early stages

Macy's-Hudson's Bay talks in early stages

The stock surged as much as 12 percent to $34.37 in NY, the biggest intraday gain since August 11. The retailers are also exploring other ways to work together, including a potential real estate deal, the paper reported. At Hudson's Bay, a sprawling business that includes Saks Fifth Avenue and Lord & Taylor, things weren't quite as grim, but holiday results still suggested that the company is still facing some challenges in connecting with shoppers.

Macy's has reported declines in same-store sales, a key retail metric, in 12 of the past 14 quarters.

According to the Journal's Dana Mattioli, Suzanne Kapner, and David Benoit, the talks are preliminary and a deal is not assured.

Both Hudson's Bay and Macy's said in statements that they do not comment on rumor or speculation. The company had a market cap of C$1.82 billion (US$1.40 billion) as of Thursday's close.

If it comes through, this would be the fifth deal Hudson's Bay has made since 2013.

UK Government Rejects Anti-Trump Petition
Somali-born British Olympic champion runner Mo Farah said he feared it would prevent him returning to the USA , where he lives. But with more than 1.6 million Britons disagreeing with her, the issue will now be debated in Parliament next month.

Neighbours flock online to crown Miss Universe
The grand finale will be hosted by Emmy Award victor Steve Harvey and will feature body activist Ashley Graham as backstage host. The 65th Miss Universe coronation will be seen live on ABS-CBN Channel 2 on Monday, January 30, 2017, at 8 a.m. (Manila time).

Crouch scores 100th PL goal as Stoke draws 1-1 with Everton
Veteran striker Peter Crouch scored his 100th Premier League goal as Stoke were held to an entertaining draw at home to Everton. Crouch's landmark moment came in the seventh minute when the veteran striker tucked home a close-range finish.

While Macy's is an iconic name, and host of New York's annual Thanksgiving Day parade, the department store has been struggling through a turnaround, engineered by Chairman and Chief Executive Officer Terry Lundgren, who assumed the roles in 2004. Hudson's Bay also had a market capitalization of $1.41 billion late Friday morning, compared to $10.64 billion for Macy's. He wants the company to focus more on its real estate value. Macy's shares shot up 9% on the news. Already, Macy's has seen major carnage in its stock.

In 2015, Smith said that the company's real estate was worth more than $20 billion alone.

A takeover of Macy's may placate activist investor Starboard Value LP, which has been pushing the retailer to wring more money from its real estate portfolio and consider forming a REIT.

Several sources said that Smith is seeking board seats at Macy's.

Like this: