Shares of troubled retailer Kohl's (KSS) are up 29% in today’s premarket on media reports that private equity firm Sycamore Partners is preparing a $9 billion U.S. takeover offer.
Sycamore is reported to be willing to pay at least $65 U.S. per share for Kohl's, implying a 39% premium to the stock’s last closing price. The news came two days after Acacia Research (ACTG) offered to pay $64 U.S. a share for Kohl’s.
Acacia has said it would likely sell Kohl's real estate holdings to raise additional capital for a deal. Kohl's has been opposed to sale-leasebacks of its real estate.
Kohl's currently has a market capitalization of $6.52 billion U.S., according to Refinitiv data.
The retail chain has also been facing pressure from activist investors to perform better for roughly a year and their unhappiness has become more visible in recent weeks.
Kohl's, like other department-store chains Macy's (M) and Nordstrom (JWN), has been ceding market share to off-price chains and online e-commerce rivals.
However, Kohl’s recent partnerships with LVMH's (LVMH) Sephora and PVH Corp's (PVH) Calvin Klein brand has earned praise from some analysts who cover the retail sector.
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