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business Saturday 5 February 2022
Kohl's: buyout offers undermine value of business

By ANNE D'INNOCENZIO it appears the board has
AP Retail Writer not authorized its bankers
NEW YORK (AP) — Kohl's to canvass the market and
says that recent offers to initiate substantive conver-
purchase the department sations with other logical
store chain undervalue its suiters. He promised the
business and said it's adopt- company will try to prevent
ing a shareholder rights the current board from
plan to head off any hostile "continuing to chill a nor-
takeovers. mal-course sales process."
The shareholder rights plan, In April 2021, Kohl's an-
which is effective imme- nounced it was adding
diately and is known as a three independent mem-
"poison pill," is set to expire bers to its board of directors
on Feb. 2, 2023, the com- as part of an agreement it
pany said Friday. struck with a key activist in-
"We have a high degree of vestor group that included
confidence in Kohl's trans- Macellum. In addition to
formational strategy, and Macellum, the group also
we expect that its contin- included Ancora Holdings,
ued execution will result in Legion Partners Asset Man-
significant value creation," agement and 4010 Capi-
said Kohl's Chairman Frank tal.
Sica in a statement. "The The retailer said Friday
board is committed to act- that it has designated its fi-
ing in the best interest of A shopper arrives at a Kohl's store in West Des Moines, Iowa, on Thursday, Feb. 25, 2021. nance committee to lead
shareholders and will con- Associated Press the ongoing review of any
tinue to closely evaluate expressions of interest. The
any opportunities to create Falls, Wisconsin, said that year, unless Kohl's decides jectivity when it comes to committee is comprised
value." its board was reviewing the to embrace some chang- evaluating value-maximiz- exclusively of independent
The move comes as Kohl's offers. es. ing sale opportunities rela- directors. Kohl's and the
has received multiple buy- The offers came just a Macellum Advisors, which tive to management's his- board is also working with
out offers in recent weeks. week after activist hedge owns nearly 5% of Kohl's out- torically ineffective stand- financial advisers, including
Private equity firm Syca- fund Macellum Advisors standing common shares, alone plans," said Jona- Goldman Sachs and PJT
more Partners had report- released a letter urging issued a statement hours than Duskin, Macellum's Partners, and have asked
edly approached Kohl's Kohl's to explore strategic later, saying it was "disap- managing partner. "We Goldman Sachs to engage
about a potential deal options, including a sale, if pointed and shocked by doubt that interested par- with interested parties.
last month. A group called the chain doesn't take ac- Kohl's hasty rejection of ties were given adequate The company is set to up-
Acacia Research, backed tion to improve its business confirmed indications of in- consideration or access to date investors on its plans
by activist hedge fund Star- and increase its stock price. terest." management, data rooms at its investor meeting on
board Value LP, bid $64 per The investor said it planned "This morning's rejections and the type of information March 7.
share, or about $9 billion. to nominate a slate of di- only validates for us that required to inform upward Kohl's shares rose more than
At the time Kohl's Corp., rector candidates at Kohl's a majority of the board is adjustments to bids." 2%, or $1.28, to $59.86 in af-
based in Menomonee shareholders meeting this entrenched and lacks ob- Duskin said that moreover, ternoon trading Friday.q

Cash-strapped Sri Lanka appeals to expats to send money

By BHARATHA MALLA- my that depends heavily main foreign exchange
WARACHI on tourism and trade, with earner— have fallen by
Associated Press the government estimating nearly 60% to $812 million in
COLOMBO, Sri Lanka (AP) a loss of $14 billion over the December from a year ear-
— Sri Lanka celebrated its last two years. The econ- lier. For the whole year, re-
Independence Day on Fri- omy is estimated to have mittances declined 22% to
day with an appeal by the contracted by 1.5% in July- $5.4 billion. The drop came
president to the country's September 2021, accord- after the government or-
expatriates to send money ing to the central bank. dered the mandatory con-
home as it struggles with President Gotabhaya Ra- version of foreign currency
the worst economic crisis in japaksa said Sri Lankans and exchange rate con-
decades mainly due to de- abroad who sent foreign trols.
pleted foreign reserves. currency back home are a Because of the currency
Sri Lankans are facing short- major resource. shortage, importers are un-
ages of milk powder, cook- "I invite all expatriate Sri able to clear their cargo Sri Lankan president Gotabaya Rajapaksa hoists the national
flag of Sri Lanka during the country's Independence Day cel-
ing gas, kerosene and other Lankans to invest in their and manufactures are un- ebration in Colombo, Sri Lanka, Friday, Feb. 4, 2022.
essentials. Cash shortages homeland," he said in an able to buy raw materials Associated Press
have hindered imports of address during a ceremo- from overseas.
raw materials for manufac- ny marking Independence Sri Lanka has borrowed ing back reserves to ensure them with an optimistic
turing and worsened infla- Day in the capital, Colom- heavily and faces repay- it can honor its debts. approach," Rajapaksa
tion, which surged to 12.1% bo. A colorful military pa- ments on $15 billion in inter- "None of the crises we ex- said. "We have faced criti-
in December. rade followed his speech. national sovereign bonds. perience today are long cal problems in the recent
The pandemic has dealt a Data shows that overseas Officials have said the gov- term problems. history as well and found
heavy blow to an econo- remittances — the nation's ernment is gradually build- We can find solutions to solutions."q