$24B Buyout Buzz Boosts Macy's Shares

KKR and Goldman considering offer
By Peter Fearon,  Newser Staff
Posted Jul 19, 2007 4:50 AM CDT
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(Newser) – Shares in Macy's soared amid reports of a pending $24-billion buyout plan by KKR and Goldman Sachs, reports Bloomberg. Stock rose $3.06—7.6%—to $43.09 after Women's Wear Daily reported the news. The Wall Street firms would pay $52 a share—a 30% premium on Wednesday's close, according to the report.

"There is asset value there so it is reasonable that private equity would be looking at it," a fund manager told Bloomberg. But a sale is by no means certain. "We think management would prefer to remain independent rather than subject Macy's to the risks of a leveraged buyout," said a Standard& Poors analyst.