Macy's has turned down the $5.8 billion take-private offer it received from Arkhouse Management and Brigade Capital Management last month. The retailer cited "lack of compelling value" in the offer. The rejection follows an announcement last week from Macy's that it would close five more stores and cut its workforce by 3.5%.

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The two companies already have a big position in the department store giant and offered to buy the Macy's stock they don't already own for $21 a share, representing a 32% premium to where shares closed the day before the offer was made. When the offer was made public by the Wall Street Journal, the publication reported that the investor group believes Macy's is undervalued in the public markets and would be willing to raise its offer subject to due diligence.

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However, it was quickly noted by several analyst firms that the value of Macy's real estate exceeded the offer.

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Macy's operates nearly 500 stores under its own name, with another 30 locations of Bloomingdale's locations, and some discount and smaller-format shops.

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 J.P. Morgan analytics estimated the value of the real estate holdings at $8.5 billion, or $31 a share, including the $3 billion value of the company's famous flagship Herald Square property in Manhattan. Investment bank Cowen valued the real estate holdings at between $6 billion to $8 billion. Evercore ISI says $5 billion to $7 billion for everything, with Herald Square between $900 million and $1.5 billion. TD Cowen — total value of $7.5 billion to $11.6 billion.

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