Macy's (NYSE:M) rose 2.7% amid a report that the department store chain could directly negotiate with the investor group pursuing it. Macys (M) could negotiate with Arkhouse Management Co. LP and Brigade Capital Management, LP without starting a strategic review, according to an Axios Pro report, which cited a source familiar with Macy's thinking.

Arkhouse is prepared to raise its latest $24 a share offer if necessary, the source family with the activist's thinking told the publication. The report comes as a JPMorgan credit analyst said on March 06, 2024 that the chance that Macy's agrees to a deal appears to have increased. After news of the increased bid on March 3, 2024, Macy's (M) said its board will "carefully review" and evaluate the latest proposal in consultation with its financial and legal advisors.

Macy's "softer tone" to the rejection of the latest bid, and the potential financing package are reasons why a transaction may have a higher likelihood, JPMorgan credit analyst Carla Casella wrote in a note on March 06, 2024 after meeting with the investor group and some of its financing partners in New York City. The investor group in December offered $21 a share, or $5.8 billion for Macy's, which the retailer rejected. Last month, Macy's (M) said it received notice from Arkhouse that the investor nominated nine individuals to stand for election at the 2024 annual meeting.