Macy’s ‘open’ to sale

Macy’s said it will open its books to Arkhouse and Brigade Capital, a potential breakthrough in the investment firms’ $6.6 billion bid to take the department store operator private.

Macy’s, which had snubbed Arkhouse and Brigade’s previous acquisition overtures, has now entered into a confidentiality pact with them that allows the exchange of commercially sensitive information, a spokesperson for Macy’s said.

Having access to such due diligence could enable Arkhouse and Brigade to secure debt commitments to finance the deal, sources had earlier said. The firms have so far secured letters from firms such as investment bank Jefferies Financial Group indicating confidence a debt package can be put together.

The firms have also provided commitments for the equity portion of their bid. Their equity partners include Fortress Investment Group and One Investment Management US.

Macy’s shares edged 1.4% to close at $21.54.

Arkhouse and Brigade have already raised their offer from $21 to $24 per share and have said they are open to increasing their bid further subject to due diligence. up