Cincinnati – Macy’s Inc. may be finding its way out of its troubles by going private.
Rumors have been rampant for the past couple of weeks that the company may be the target of a leveraged buyout, and the stock price rose Wednesday after a report said a private-equity firm is pondering a $24 billion offer for Macy’s.
Kohlberg Kravis Roberts & Co. is studying a bid to buy the Cincinnati-based retailer for $52 a share, according to trade paper Women’s Wear Daily.
WWD also reported that the Principal Investment Area, Goldman Sachs Group Inc.’s private-equity arm, and its real-estate group are believed to be participating in the negotiations.
Shares of Cincinnati-based Macy’s soared more than 7.6 percent, or $3.06, to close at $43.09, near the high end of its 52-week range of $33.52 to $46.70.
Macy’s spokesman Jim Slu zewski and David Lilly, a spokesman for KKR, declined to comment on the report Wednesday.
A person close to the situation, who asked not to be named given the sensitivity of the negotiations, said Goldman Sachs was not involved in the talks.
“Macy’s is in some ways a great candidate to be taken private,” A.G. Edward & Sons retail analyst Robert Buchanan said. “They generate a lot of cash, and they own a lot of real estate.”
Liz Dunn of Thomas Weisel Partners wrote in a report published Wednesday that Macy’s owns 54 percent of its real estate, roughly twice the department-store average.
Buyout rumors have driven shares up in recent weeks as Macy’s struggles to reinvigorate its business.
