Key Takeaways

• Activist investor Arkhouse Management and its partner, Brigade Capital Management, are said to have once again raised their offer to buy Macy's.

• The Wall Street Journal reported the new bid is for $24.80 per share, up from the initial offer of $21 in December and $24 made in March.

• The report sent shares of Macy's soaring in trading Friday.

Shares of Macy’s (M) soared in trading Friday on indications activist investor Arkhouse Management and partner Brigade Capital Management have again sweetened their offer for the biggest U.S. department store chain.

The Wall Street Journal reported Wednesday evening that the firms raised their bid for Macy's by about $300 million to $6.9 billion. The $24.80 per share for the stock Arkhouse and Brigade don’t already own would be a 38.3% premium to Macy’s closing price Wednesday.

This Would Mark Duo's Third Offer for Macy's Since December

The two companies initially presented Macy’s with a $21-per-share deal in December, which the board rejected. That led Arkhouse and Brigade to launch a proxy fight that ended when Macy’s approved two board members backed by the investors, after Arkhouse and Brigade came back in March with a $24-per-share bid.

When reached by Investopedia, a representative for Arkhouse declined to comment. Investopedia has also reached out to Macy’s for reaction.

The news sent shares of Macy’s surging roughly 11% to $19.88 as of 11:30 a.m. ET Friday. They are down about 1% for 2024.

Read the original article on Investopedia.