Kohl's on Monday confirmed it has received takeover letters, potentially valuing the company around $9 billion, sending shares soaring more than 30% even in a sharply lower stock market.
"The Kohl’s Board of Directors will determine the course of action that it believes is in the best interests of the Company and its shareholders. Shareholders are not required to take any action at this time," Kohl's said in a press release.
It did not offer any details.
Over the weekend, The Wall Street Journal reported Starboard Value's arm, Acacia Research, offered $64 per share a 37% premium to Friday's closing price.
On Monday, Engine Capital, in a letter to Kohl's executives, urged the retailer to explore its options.
"Over the weekend, we read with interest multiple press reports stating that a Starboard-led consortium has offered USD64 per share in cash for Kohl's. When the board of directors of a company, whose stock has underperformed for so long, receives a credible offer at a 37% premium, it has a fiduciary obligation to aggressively pursue it, while openly considering all alternatives to maximize value. It can't simply dismiss the offer and argue that the standalone plan will produce greater long-term value for shareholders" the letter said.