An active investor is urging department-store chain Kohl’s Corp to consider selling the company or divestment of its e-commerce business.
According to a letter sent to Kohl’s KSS, New York-based hedge fund Engine Capital LP wants the retailer to examine two options for its backward stock price correction.
Board seen by Sunday and the Wall Street Journal. The engine owns about 1% of Kohl’s.
Engine argues that the company has underperformed both the S&P 500 and other retailers in recent years. Shares of Kohl’s closed Friday at $48.45, roughly where they were 10 years ago, giving the Menomonee Falls, Wis., company a market value of nearly $7 billion.
Engine said in the letter that assuming online sales revenue of approximately $6.2 billion, Kohl’s digital business alone would be worth $12.4 billion. Engine also said it believes there are private-equity firms that will pay at least $75 per share and talks with potential buyers suggest they can do so by monetizing Kohl’s real estate. can do.
Kohl’s did not immediately respond to a request for comment.
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