Macy’s Inc. Shares Surging - Here's Why

Macy’s Inc. (NYSE:M) shares jumped as much as 8% on Friday, as rumors circulated that Canadian department store operator Hudson’s Bay Company (TSE:HBC)(HBAYF) was considering a takeover bid for the embattled U.S. retailer.

Written by StockNews.com

First reported by the Wall Street Journal and detailed by Bloomberg this morning, the talks are still exploratory in nature, according to an unnamed person familiar with the matter:

Discussions are preliminary and a full takeover may not be the only option on the table, the person said, asking not to be identified as the details aren’t public.

Macy’s shares rose rocketed higher on the news. The struggling retailer, which has been shuttering stores and even considering forming a REIT to try and leverage its real estate assets, hit fresh 52-week lows just a couple of weeks ago. There’s little question the company is open to takeover offers, with growth prospects slim for its waning brick-and-mortar business. Both companies declined to comment on the matter, as is customary when negotiations are ongoing.

Hudson’s Bay Company, headquartered in Toronto, Ontario, Canada, operates 90 of its own namesake stores, and also owns venerable U.S.-based upscale retail chains Saks Fifth Avenue and Lord & Taylor.