Why Kohl's Shares Are Surging Today

Kohl's Corp KSS Board of Directors has entered into exclusive negotiations with Franchise Group Inc FRG over the potential sale.
Franchise's bid of $60 per share constitutes a 42.5% premium to Kohl's closing price of $42.12 on June 6.
Related: Sycamore, Franchise Group Submit Bids for Kohl's: WSJ
The discussion will go on for three weeks to allow the parties time to agree on binding documentation and for the Franchise Group to finalize financing arrangements.
Also Read: Multiple Bidders, Key Executives Departure, Mixed Q1 Earnings - Lots Going On With Kohl's
Kohl's said its Board remains focused on selecting the path that maximizes value for all shareholders.
If Franchise Group and Kohl's enter into a definitive agreement, Franchise Group intends to contribute approximately $1 billion of capital to the transaction.
Price Action: KSS shares are trading higher by 13.5% at $47.80 in premarket on the last check Tuesday.
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