Connect with us

Hi, what are you looking for?

Financial News

Franchise Group considers lowering Kohl’s bid closer to $50 a share from $60


People walk near a Kohl’s department store entranceway on June 07, 2022 in Doral, Florida. Kohl’s announced that it has entered into exclusive negotiations with Franchise Group, which is proposing to buy the retailer for $60 per share. 

Joe Raedle | Getty Images

The retail holding company Franchise Group is weighing lowering its bid for Kohl’s to closer to $50 per share from about $60, according to a person familiar with the deal talks.

Advertisement. Scroll to continue reading.

Kohl’s shares dropped more than 10% Wednesday afternoon.

The owner of The Vitamin Shoppe is actively considering whether or not buying Kohl’s is the best use case of Franchise Group’s capital, said the person, who asked to remain anonymous since the conversations are private and ongoing.

Franchise Group has lined up financing with lenders, the person added. But the company, run by Chief Executive Officer Brian Kahn, is weighing a lower a price now as retailers grapple with bloated inventory as consumers balk at higher prices.

Earlier this month, Franchise Group proposed a bid of $60 per share to acquire Kohl’s at a roughly $8 billion valuation. The two companies then entered a three-week window during which they can firm up any due diligence and final financing arrangements. That ends this weekend.

Kohl’s shares opened Wednesday at $41.52 and traded as low as $34.64 in late May.

Representatives for Kohl’s and Franchise Group didn’t immediately respond to CNBC’s requests for comment.

Advertisement. Scroll to continue reading.

This story is developing. Please check back for updates.



Source link

Advertisement

You May Also Like

World News

SINGAPORE — Shares in the Asia-Pacific region mostly fell on Tuesday as investors weigh economic concerns. Hong Kong’s Hang Seng index fell 0.86% in...

Business News

More than 40 migrants were found dead Monday in the trailer of a big-rig truck in San Antonio, authorities said. San Antonio Fire Chief...

Breaking News

NEW YORK — The company planning to buy Donald Trump’s new social media business has disclosed a federal grand jury investigation that it says...

Financial News

LaGuardia International Airport Terminal A for JetBlue and Spirit Airlines in New York. Leslie Josephs | CNBC JetBlue Airways again increased its offer for...

World News

DUBAI, United Arab Emirates — The state-owned oil and gas company Qatar Energy said Monday it is joining a new industry-led initiative to reduce...

World News

Nike Air Jordan shoes are seen in the store in Krakow, Poland on August 26, 2021. Jakub Porzycki | Nurphoto | Getty Images Nike...

Advertisement