Macy’s opens its books in company sale talks

Macy’s Inc told Reuters on Tuesday that it will open its books to Arkhouse and Brigade Capital, a potential breakthrough in the investment firms’ $6.6 billion bid to take the U.S. department store operator private.

Macy’s, which had snubbed Arkhouse and Brigade’s previous acquisition overtures, has now entered into a confidentiality pact with them that allows the exchange of commercially sensitive information, a spokesperson for Macy’s said.

Having access to such due diligence could enable Arkhouse and Brigade to secure debt commitments to finance the deal, people familiar with the matter had earlier told Reuters. The firms have so far secured letters from firms such as investment bank Jefferies Financial Group, opens new tab indicating confidence a debt package can be put together.

The firms have also provided commitments for the equity portion of their bid. Their equity partners include Fortress Investment Group and One Investment Management US.

There is no certainty that the ensuing negotiations will lead to a transaction, the sources that spoke to Reuters cautioned.

Arkhouse and Brigade declined to comment.

Macy’s shares jumped 3% on the news to $22.09 in afternoon trading on Tuesday.