Macy's and activist investor Arkhouse Management have reached an agreement to add two independent directors to the retailer's board. The CEO is now under pressure to execute a turnaround vision amidst the decision to sell or bet on his plan.
Macy's and activist investor Arkhouse Management settled a proxy fight this week, with an agreement to add two independent directors to the retailer's board.
"It stops the pressures in the here and now," said Neil Saunders, managing director of research firm GlobalData."But in a way, you're letting the wolf into the henhouse."in December to buy Macy's and take the company private at $21 per share.
Along with adding new members to Macy's board, Arkhouse and Brigade have begun conducting due diligence, a process that allows the suitors access to the department store operator's books so it can get a clearer sense of the company's finances and potential liabilities. Kahane said the activist investor wants Macy's to become"a stable and growing company that can live for decades, and potentially another 150 years."
While the two directors are independent, with no affiliation to either Arkhouse or Brigade, they'll join the board's seven-person finance committee, tasked with evaluating and making recommendations about the acquisition bid and any other similar offers.
Macy's Activist Investor Arkhouse Management Proxy Fight Independent Directors Turnaround Vision Department Store Retailer
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