Report: Hudson's Bay Makes Takeover Approach to Macy's

Markets Reuters

FILE - In this Nov. 21, 2013, file photo, with the Empire State building in the background, the Macy's logo is illuminated on the front of the department store in New York. A new year season is biting back at Macy’s and Kohl’s early in the new year, ... with the duo’s shares tumbling in premarket trading on Thursday, Jan. 5, 2017, following news that they had trouble bringing shoppers into their stores to buy presents. (AP Photo/Mark Lennihan, File) (Associated Press)

Canadian department store operator Hudson's Bay Co has made a takeover approach to U.S. department store chain Macy's Inc, the Wall Street Journal reported, citing sources.

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Shares of Macy's, which had a market value of about $9.4 billion as of Thursday's close, were up 7.3 percent at $32.96.

Shares of Hudson's Bay, which also owns the Saks Fifth Avenue store, were up 2.1 percent at C$10.26. The company had a market cap of C$1.82 billion ($1.40 billion) as of Thursday's close.

Talks between the companies are at a preliminary stage and also encompass other ways they could cooperate, the Journal said, citing one of the people, adding that a deal for Macy's real estate is also a possibility. (http://on.wsj.com/2jKYQ9s)

Hudson's Bay could raise equity and debt against its real estate portfolio, which could be worth $14 billion, to fund the deal, the Journal said.

The company could also bring in a partner, the Journal reported.

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Hudson's Bay said it does not comment on rumors or speculation, while Macy's was not immediately available to comment. ($1 = 1.3002 Canadian dollars) (Reporting by Siddharth Cavale in Bengaluru; Editing by Anil D'Silva)

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