Categories Earnings, Retail

Nordstrom turns down buyout bid from founding family

It’s no secret that the Nordstrom family has been trying to take the company private for quite a while now. Considering the current difficult state of the retail environment, the group allegedly believes that taking the company out of the public market would give them the freedom to innovate and turn its fortunes around without the intervention of investors.

Although these efforts started last June, a solid deal did not materialize, and the endeavor was put on hold in October until after the holiday season.

The founding family finally came up with an offer of $50 a share with a total value of about $8.4 billion in order to buy out the company. This bid was termed insufficient by the independent directors of the board who also threatened to abort discussions if a subsequent suitable offer was not made.

Nordstrom does not have a CEO like its peers. It is operated by a co-president triad whose members Blake Nordstrom, Erik Nordstrom, and Peter Nordstrom are all part of the founding family faction.

A special committee appointed by the board to oversee the transaction has prohibited the management from sharing any due-diligence information with the family group.

The family has termed the current deal as generous, so it remains to be seen whether it will be willing to raise its offer and to what extent. There is also a possibility that external buyers could take an interest in the transaction and perhaps place their own bets.

Most Popular

Aurora Cannabis (ACB) Earnings: 3Q21 Key Numbers

Aurora Cannabis Inc. (NYSE: ACB) reported third quarter 2021 earnings results today. Total revenues fell 25% year-over-year to CAD55.1 million. Adjusted EBITDA loss amounted to CAD24 million. Cash balance as

Walt Disney (DIS) Q2 revenue down 13%; earnings beat estimates

Media behemoth The Walt Disney Company (NYSE: DIS) reported second-quarter revenues that declined from last year as customers stayed away from theatres and parks due to pandemic-related safety issues and

Three key factors that bode well for Tattooed Chef (TTCF) going forward

Shares of Tattooed Chef Inc. (NASDAQ: TTCF) have gained 57% over the past 12 months but has dropped 25% since the start of this year. The sentiment on the stock

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top