Finance
Arkhouse has financing in place for a Macy's take-private, managing partner Kahane says
Arkhouse has the financing in place to take Macy’s private at a bid of $5.8 billion, managing partner Gavriel Kahane told CNBC Thursday, but the activist investor has run into roadblocks without the department store retailer’s cooperation on due diligence.
“At this stage, based on public information, there isn’t a bank in the world that would give you committed financing, and that’s just par for the course,” Kahane said on CNBC’s “Money Movers.” He added that management’s response in the coming days and weeks would determine how Arkhouse moved forward.
Arkhouse has previously said it would take “all necessary steps” to acquire Macy’s, including going directly to shareholders.
Kahane’s Arkhouse and Brigade Capital submitted an unsolicited bid to Macy’s management in December to take the company private at $21 a share, a premium of more than 32%. Investment bank Jefferies has provided a highly confident letter, Arkhouse has previously said, meaning the bank believes the two firms will be able to raise the capital necessary to close the deal.
Arkhouse also said it could raise its bid above the original $21-per-share offer, but only if the Macy’s management was willing to sign a mutual non-disclosure agreement and permit diligence to begin.
Macy’s board rejected that offer on Sunday, saying in part that it believes it is “highly unlikely” Arkhouse and Brigade’s proposed financing “could be successfully executed.” It also refused to enter into a non-disclosure agreement or permit diligence to move forward, with CEO and chair Jeff Gennette saying in a letter to Arkhouse and Brigade that “such an exercise would unnecessarily distract our management team.”
Today’s installment of campaign-related news items from across the country.
* When it comes to campaign finance laws, both parties’ campaign committees have faced restrictions on how much money they could spend in coordination with candidates’ campaigns. Those limits are now effectively gone.
As MS NOW’s Jordan Rubin explained, “The Supreme Court’s GOP-appointed majority ruled for Republicans in their campaign finance challenge to restrictions on political parties spending on ads with input from the party’s candidate.”
A Punchbowl News report added that the ruling, written by Justice Brett Kavanaugh, “handed Republicans a massive win” and is likely to “usher in the biggest change to campaign finance law since the Citizens United decision.”
The same report went on to note that Tuesday’s high court ruling “allows for unrestricted coordination between candidates and party committees. That means committees, like the NRSC or the DCCC, can run unlimited TV ads with allied candidates. More importantly, they can also buy those ads at the much cheaper rate offered to candidates. … Tuesday’s SCOTUS ruling will also eradicate the need for independent expenditure arms at party committees.”
Republicans already enjoyed a significant financial advantage over Democrats. The Republican-appointed justices just made it easier for the GOP to capitalize on that advantage.
* In Colorado’s closely watched Democratic primaries, incumbent Sen. John Hickenlooper fended off a challenge from the left, but some of his colleagues weren’t as fortune: Democratic socialist Melat Kiros ended long-serving Rep. Diana DeGette’s career in Denver’s congressional district, while state Attorney General Phil Weiser scored a major upset by defeating incumbent Sen. Michael Bennet in a gubernatorial primary.
* In the race for North Carolina’s open Senate seat, former Democratic Gov. Roy Cooper leads former Republican National Committee Chairman Michael Whatley in the latest New York Times/Siena poll, 50% to 43%, pointing to a possible pickup opportunity for Democrats.
Google Cloud and FactSet, a provider of data and artificial intelligence solutions to the financial markets, plan to jointly develop AI agents designed to assist with portfolio operations, deal advisory and corporate finance.
Tuesday’s Supreme Court ruling changing certain federal campaign finance limits could make a big difference in the battle for control of Congress this fall, giving Republican candidates who have been getting outraised by opponents direct access to more party cash.
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