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.
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.
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)