The sea of red didn’t impact Kohl’s Corporation.
Even with the Dow down 1,000 points intraday, Kohl’s exploded 36%, or $16.87 higher on a volume spike to 41.7 million shares, as compared to daily average volume of 4.7 million.
All thanks to the company’s confirmation it received interest from potential acquirers. In fact, according to The Wall Street Journal, a group backed by Starboard Value offered to buy the retailer for $9 billion, or $64 in cash. In addition, Sycamore Partners reportedly inquired about acquiring the retailer, with an offer of $65 a share.
Per a Kohl’s press release, the company “confirmed that it has received letters expressing interest in acquiring the Company. The Kohl’s Board of Directors will determine the course of action that it believes is in the best interests of the Company and its shareholders. Shareholders are not required to take any action at this time.”
Despite the offers, there are other analysts that believe the company is worth far more than $64 to $65 a share. Engine Capital, for example believes there are financial groups that could pay a 50% premium, or about $75 a share for Kohl’s.
It’ll be interesting to see what Kohl’s decides to do at this point.
We’ll keep you up to date, as news becomes available.