Macy’s shares surge 18 percent following buyout offer

Shares of US department store Macy's jumped almost 18 percent in early Monday trading following news that an investor group has offered a 5.8 billion dollars buyout deal.

According to Wall Street Journal, Arkhouse Management, which focuses on real estate investments, and global asset manager Brigade Capital Management have jointly made the offer to take the iconic retailer public.

The buyout offer reportedly works out to be 21 dollars per share, around 21 percent above Macy’s closing price on Friday.

Last month, Macy’s reported third quarter diluted earnings per share of 15 cents and adjusted diluted earnings per share to 21 cents, while net sales of 5 billion dollars were down 7 percent.

Commenting on the outlook, the company said it expects net sales of 22.9 billion to 23.2 billion dollars, with comparable sales to be down between 6 to 7 percent and adjusted earnings per share to range between 2.88 to 3.13 dollars.

Macy's, founded 165 years ago, parent of Bloomingdale's and Bluemercury, is famous for hosting the New York City Thanksgiving Day parade. The retailer operates over 720 stores in the US.