Macy’s Receives Takeover Bid

Canada’s Hudson’s Bay Co. has approached Macy’s Inc. about a takeover, reports The Wall Street Journal.

Talks between the companies are at a preliminary stage and also encompass other ways they could cooperate, one source told the paper, adding that a deal for only Macy’s real estate is also a possibility.

Shares of Macy’s jumped 6.4% to $32.69 Friday after The Journal reported the talks.

Notes WSJ:

While its market value is dwarfed by that of Macy’s—1.9 billion Canadian dollars ($1.4 billion) compared with $10 billion as of Friday’s close—Hudson’s Bay could raise equity and debt against its real estate portfolio, which could be worth $14 billion, one of the people said. It could also bring in a partner.

 As of January, Macy’s operated more than 800 stores. In addition to its flagship Macy’s stores, the Cincinnati company owns upscale department-store chain Bloomingdale’s.