Report: Hudson's Bay Makes Macy's An Offer

Hudson’s Bay Co reportedly initiated early talks for a Macy’s Inc M takeover Friday, but Dow Jones warned that discussions may not lead to a deal.

Hudson's Bay is the owner of Saks Fifth Avenue and Lord & Taylor.

The news comes a day after reports of disarray in Macy’s management. Outgoing CEO Terry Lundgren had allegedly been working to prevent significant disruptions in the company’s board while fielding several acquisition offers.

Sources familiar with the company alerted the New York Post to a possible deal as a “proactive measure to head off any attempt to mess with the board." Shares moved up 5 percent on the news, which initially broke Wednesday night.

Rough Time For Macy's

Macy’s has been having a rough couple of months, with December proving particularly difficult after the company reported sales comps of -2.1 percent and updated annual EPS guidance to between $2.95 and $3.10 from a previous range of $3.15 to $3.40. Shares plummeted 14.2 percent at the time.

Friday's report, then, was welcome news for those investing in the struggling company. Macy’s shares were briefly halted and resumed minutes later up 7 percent.

At the time of publication, Macy’s was trading up 8.5 percent at $33.41. Meanwhile, many fellow retailers were riding the wave of optimism:

• Sears Holdings Corp SHLD was up 3 percent
• J C Penney Company Inc JCP up 1 percent
• Kohl’s Corporation KSS up 2.3 percent
• Nordstrom, Inc. JWN up 1.9 percent
• Dillard’s Inc DDS up 1.5 percent
• TJX Companies Inc TJX up 0.4 percent
• Target Corporation TGT up 0.8 percent.

The SPDR S&P Retail (ETF) XRT was up 1 percent.