Previously there had been speculation that Eddie Lampert was looking at Macy's. Now it seems another potential bidder has emerged--private equity giant KKR is said to be looking to make a $24 billion bid along with Goldman Sachs.
Women's Wear Daily broke the story.
Sources said KKR partnered with Goldman Sachs on an offer for the $27 billion retailer valued at $52 a share, or about $24 billion, which may or may not exclude Macy's debt.
Private equity sources said an agreement in principle could be within days of getting completed. The financial sources said principals involved had expected a deal to be signed last weekend, but others indicated there were details that needed to be ironed out. Sources also believe that the parties are trying to get a deal done before Monday, the scheduled date for a series of investor meetings planned by Macy's management.
A value for the potential deal could not be ascertained due to uncertainty over how much debt Macy's currently has on its books. According to private equity sources, KKR is keen on inking a deal as a way to help sell shares of its planned IPO later this year. Should a deal come to fruition, it is believed KKR would keep current Macy's management in place, including chairman and chief executive officer Terry Lundgren, the architect of the current configuration of the department store giant.