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Kohl's Stock Surges After Reuters Says it is Braced For Bidders

Published 05/25/2022, 01:23 PM
Updated 05/25/2022, 01:25 PM
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By Sam Boughedda

Investing.com -- Kohl's Corp (NYSE:KSS) 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.

The bids are expected to be lower than the previous bids made earlier this year to reflect the market downturn and the fall in its stock. The potential bidders include Sycamore Partners, Franchise Group (NASDAQ:FRG), and mall owner duo Simon Property Group (NYSE:SPG) and Brookfield Asset Management. 

The bidders plan to lower their offers by 10% to 15%. 

In addition, Acacia Research is preparing its next steps after its recent bid of $64 a share was rejected earlier this year. Reuters reported that some bidders were willing to pay at least $70 a share. 

Kohl's stock is currently up 12% at $40.60 per share.

Elsewhere on Wednesday, Kohl's announced plans to increase its investment in new store openings, remodels, and enhanced omnichannel capabilities. 

Kohl's plans to open 100 new, small-format stores over the next four years in hopes of reaching new customers. Kohl's believes its new store growth offers a sale opportunity of more than $500 million.

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