Shares of Kohl’s Corp surged 29% after Reuters posted that Sycamore Partners had reached out for a $9B takeover offer, according to a report by Reuters on Monday.

  • An anonymous source informed Reuters that Sycamore was ready to pay not less than $65 per share for Kohl’s, signaling a 39% premium to the last close.
  • The news came two days after Acacia Research, supported by activist investment firm Starboard Value, provided to pay $64 per share.
  • In a client note, Michael Binetti, analyst Credit Suisse stated that Kohl’s could warrant a per-share value of between $70 and $80, depending on the valuation of its retail operations.
  • Paul Lejuez, the Citi analyst, stated that KSS is a mispriced asset. KSS is a strong free cash flow generator, and it does not seem to be getting credit from the market.

Kohl’s has a market capitalization of $6.52 billion. The chain has also been facing pressure from activist investors to perform better for nearly a year. KSS up +28.50%, Pre-market trading