FRIDAY 2/4/2022 9:27 a.m.

NEW YORK (AP) — Kohl’s says that recent offers to purchase the department store chain undervalue its business, and it is adopting a shareholder rights plan to head off any hostile takeovers.

The shareholder rights plan is effective immediately and expires in a year. The move comes as Kohl’s has received multiple buyout offers in recent weeks.

Private equity firm Sycamore Partners had reportedly approached Kohl’s about a potential deal last month. A group called Acacia Research, backed by activist hedge fund Starboard Value LP, bid $64 per share, or about $9 billion.

At the time the Menomonee Falls, Wisconsin-based retailer said that its board was reviewing the offers.

ORIGINAL: Kohl’s confirms approach about potential acquisition

MONDAY 1/24/2022 10:26 a.m.

NEW YORK (AP) — Kohl’s is confirming that it has been approached about a possible sale of the department store chain, sending shares up more than 30% in early trading.

The company said that it would not comment further, but its confirmation Monday follows media reports that the private equity firm Sycamore Partners had approached Kohl’s about a potential deal. Days earlier, a group backed by activist hedge fund Starboard Value LP reportedly bid $64 per share or about $9 billion.

The Menomonee Falls, Wisconsin-based retailer said its board is reviewing the offers.

In December, Engine Capital sent a letter to Kohl’s asking the retailer to consider selling the entire company or spin off its e-commerce division. Engine Capital said that if the company chose to spin off its e-commerce division, a move similar to what Saks did earlier this year, the stand-alone business could be valued at $12.4 billion or more.