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Simon Property Group (SPG) and Brookfield Asset Management (BAM), the new owners of JCPenney, have allegedly made an offer to acquire department store retail chain Kohl's (KSS) for $8.6 billion, New York Post reports, citing sources close to the talks. 

Under the proposal, SPG and BAM would buy Kohl's for around $68 per share, sources said. The plan is for JCPenney's corporate parents to run both brands separately but streamline operations and cut costs. SPG and BAM believe they can reduce costs by $1 billion over the next three years, the sources added. 

Kohl's shares jumped as much as 4.5% on the news, the most since early April. 

It's crucial to note SPG and BAM bought JCPenney after the century-old retailer filed for Chapter 11 bankruptcy in May 2020. "Private equity giants Sycamore Partners and Leonard Green & Partner as well as Saks Fifth Avenue's Canada-based parent company Hudson's Bay are reportedly interested in acquiring Kohl's," NYPost said.