Rumor-meisters rejoice. The current gossip behind the most recent run up in the price of Macy's shares is that Edward Lampert, chairman of Sears Holdings, is interested in putting his company's considerable cash to work to acquire the parent of Macy's and Bloomingdale's.
Andrew Wilkinson, senior market analyst at Interactive Brokers Group, told The Associated Press, "The takeover rumor was doing the rounds a couple of weeks ago. I don't think (Edward Lampert's) name was attached before, but now someone has thrown that one out there."
Speculation over Macy's future has grown in recent weeks with analysts claiming to detect unusual activity in the sales of the retailer's stock. William Lefkowitz, options strategist at brokerage firm vFinance Investments, told Reuters that investors have turned to "buying shares and some options in case something happens."
Many in and around the retailing business would not be thrilled at the idea of Macy's in the possession of Edward Lampert.
Jim Ostroff, associate editor of Kiplinger Washington Editors, told the Chicago Sun-Times the popular view would be that "Macy's and Bloomingdale's would never see better times again." He also said he would not be surprised to see Sears Holdings make a run at Macy's because the company is led by "an individual with a huge war chest and an even bigger ego."
Mr. Lampert has not been the only one connected to a potential bid for Macy's. Kohlberg Kravis Roberts (KKR) is among those thought to be possibly interested in making a run at the company.
Neither Sears Holdings nor Macy's representatives would comment on the speculation.
Discussion Questions: What do you make of the speculation surrounding a possible takeover of Macy's? What would you expect from a deal that saw Edward Lampert and Sears Holdings acquire Macy's and Bloomingdales?