Macy’s reaches a settlement with activist investors and adds two new directors.

The veteran US department store giant Macy’s has ended its dispute with activist investment firm Arkhouse and agreed to add two directors who will be responsible for reviewing Arkhouse’s plan to acquire Macy’s, which means Macy’s may further move towards privatization.

After the news was revealed, Macy’s stock price once fell by 2.5% on Wednesday and has now rebounded by 0.5%.

The 165-year-old Macy’s said on Wednesday that it immediately appointed Ric Clark and Rick Markee nominated by Arkhouse as directors, bringing the number of directors on the board to 15.

At the same time, the company provided some confidential information to Arkhouse to facilitate both parties to discuss the details of the overall sale of Macy’s.

Macy’s said that the board is open to enhancing shareholder value.

The investors led by Arkhouse first proposed the suggestion to acquire Macy’s in 2023, and announced to launch a rights defense war against Macy’s in February this year to seek support for 9 people to join Macy’s board of directors.

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