Two activists target this firm

Article Excerpt

KOHL’S CORP. $59 is a hold. The company (New York symbol KSS; Consumer sector; Shares outstanding: 139.2 million; Market cap: $8.2 billion; Dividend yield: 1.7%; Takeover Target Rating: Medium; www.kohls.com) operates 1,162 department stores in all states except Hawaii. It also sells goods online. Acacia Research Corp., a firm backed by activist investor Starboard Value, recently offered to acquire Kohl’s for $64.00 a share. The company has rejected the offer as too low, and has hired financial advisers, including Goldman Sachs, to review any further offers. It has also adopted a shareholder rights plan (or “poison pill”) to thwart a hostile takeover. Meantime, Macellum Advisors, another activist firm, wants to replace Kohl’s 10-member board of directors with its own slate of nominees. Macellum, which owns about 5% of the company’s shares, feels Kohl’s management is doing a poor job of attracting takeover bids. Kohl’s shares are up 21% since the start of 2022, partly because U.S. consumers returned to in-person shopping following COVID restrictions. However, the stock…