Macy’s dropped after buyout talks were ditched

Macy's (NYSE:M) stock dropped close to 12% on Monday, after the American department store operator terminated buyout discussions with Arkhouse Management and Brigade Capital Management.

The latest offer of $24.80 per share that valued Macy's at $6.9 billion was not sufficiently compelling, according to Macy’s.

Buyout talks began in December and since than there have been multiple revised offers from the bidders.

Despite the increased bids, Macy's team has decided to focus on its own turnaround strategy aimed at enhancing shareholder value.

It intends to close 150 stores and monetise some $750 million worth of assets.

Macy's, meanwhile, said it remains open to exploring all paths to enhance shareholder value but concluded that the current proposal lacked the certainty and value needed.