(Reuters) Shares of Kohl’s Corp jumped 29% in premarket on Monday on reports that private equity firm Sycamore had submitted a $9 billion takeover offer.
Sycamore is said to have submitted a bid of about $65 per share, which represents a 39% premium to Kohl’s’s closing price.
Credit Suisse analyst Michael Binetti says Kohl’s is a mispriced asset, lauding it as a strong free cash flow generator that could warrant a $70 to $80 per share value.
The takeover off by Sycamore comes only two days after Acacia Research also offered $64 per share in the company.
Kohl’s has been facing activist investors’ pressure over its performance, with the company continuing to lose market share to online-based rivals and off-price chains.
Kohl’s is estimated to have a market value of $6.52 billion, with Credit Suisse estimating the company’s real estate worth at around $6.4 billion.
KSS: NYSE is currently up +26.39%.
