Macy’s (NYSE:M) announced the appointment of two new independent directors, Richard Clark and Richard L. Markee, to its Board of Directors, with immediate effect. This appointment marks an end to the retailer’s proxy battle with Arkhouse Management, as both of the independent directors are nominees of Arkhouse.
In addition, the company announced that Tony Spring, CEO and chairman-elect of Macy’s, will assume the role of Chairman. Moreover, Macy’s announced that, with the appointment of the Arkhouse nominees as independent directors, it has entered into an agreement with Arkhouse for the withdrawal of its other director nominations.
Macy’s Proxy Battle With Arkhouse
This reshuffle moves Macy’s closer to a deal with Arkhouse that could take it private. Macy’s added that it continued to engage in discussions with Brigade Capital and Arkhouse Management and had shared confidential information with the firms.
Earlier this year, Arkhouse had started the proxy battle after Macy’s rejected a $5.8 billion takeover offer from an activist investor and Brigade Capital Management.
The retailer added that it remained committed to “the best path to create shareholder value.”
Is Macy’s Stock a Buy or Sell?
Analysts remain sidelined about Macy’s stock, with a Hold consensus rating based on two Buys, seven Holds, and one Sell. Over the past year, Macy’s has increased by more than 10%, and the average Macy’s price target of $19.44 implies a downside potential of 1.3% from current levels.
