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Kohl’s Stock Surges After Reuters Says it is Braced For Bidders -Breaking


© Reuters.

Sam Boughedda — Kohl’s Corp. (NYSE: rallied 17% on Wednesday after reports that the company was braced for lower bids from potential buyers than the ones they submitted earlier this year.

To reflect market decline and fall in stock prices, the bids will be less than those made before this year. Sycamore Partners and Franchise Group (NASDAQ:) are potential bidders, as is the mall-owner duo Simon Property Group and Brookfield Asset Management. 

Bidders will lower their bids by anywhere from 10% to 15% 

Acacia Research, which rejected its previous bid of $64 per share earlier this year is now preparing for its next steps. Reuters reports that bidders are willing to pay as little as $70 per share. 

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Kohl’s stock currently stands at $40.60 per shares, up 12%

Kohl’s made other announcements on Wednesday about plans to invest more in remodels, new store openings and enhanced omnichannel capabilities. 

Kohl’s will open 100 smaller stores within the next four year to reach new customers. Kohl’s sees its new store growth as a huge opportunity to sell more than $500,000,000.