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Private equity firm Sycamore Partners is eyeing department store chain Macy’s Inc. (NYSE:M) for a potential bid.
Sycamore has raised debt and could be in a position to make an all-cash offer for Macy’s (M), according to a Women’s Wear Daily report late Friday, which cited sources familiar with the matter.
Spokespeople for Macy’s (M) and Sycamore both declined comment to WWD on Friday on the speculation.
The speculation comes after Macy’s shares soared almost 20% Monday following a WSJ report that Arkhouse Management and Brigade Capital Management made a $21 a share, or $5.8 billion offer for the retailer.
Macy’s (M) shares fell 8% on Tuesday amid a downgrade of the stock to sell at Citi, as the analyst was skeptical that a reported $21 takeover offer would be successful.
“Others have gone down this path before (Starboard, Hudson’s Bay), we are unsure how advanced talks are (M has not commented) and in this interest rate environment and with the secular challenges M faces, it may be difficult to finance,” Citi analyst Paul Lejuez, who cut his rating to sell from neutral, wrote in a note on Tuesday. “Consider us skeptical that anything will materialize.”