$KSS merger

[Andrew Stepner]

FYI, $KSS merger is worth looking at right now with the recent news.

(I got long.)

Stepner

[Andrew Stepner]

I sold off. In hindsight I think the potential acquiring CEO from $FRG was probably posturing in the media to try to generate financing interest from other parties. That's his roadblock. Tactic could work but moreso now feels like the financing is not there based on more recent news.

Stepner

[Brendan Mathews]

Anything you’re looking at now for long-term buy and hold?

On Jun 16, 2022, at 2:19 PM, Andrew Stepner <andrew...@gmail.com> wrote:



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[Richard M]

MQ

MIR

GOOG

DFS

and picked up ASTL steel co that’s going to do a Dutch tender. 

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sent on the go

[Andrew Stepner]

I love $OPEN, albeit I'm not sure that it (nor anything else) has bottomed. 

If you want my rough repository of notes, let me know.

Stepner

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[Andrew Stepner]

More has happened with $KSS. For me, I sold at a loss a few days ago but at least missed out on today's further loss.

Latest round of news is intriguing though. Reporting that the financing is in place has been unclear but it seems now like they *probably* have the financing lined up and now $FRG wants to recut the deal lower. This CNBC report says they may lower the bid from 60 to 50:

https://www.cnbc.com/2022/06/22/franchise-group-considers-lowering-kohls-bid-closer-to-50-a-share-from-60.html

It is unclear that Kohl's will accept $50. Though it is a rough market so maybe they are more motivated? Or maybe they compromise at $55 or $52 or something? Plus there is this reporting that says they will keep the CEO and management team in place. So maybe Kohls would be ok with selling at less than $60?

https://www.reuters.com/markets/us/exclusive-franchise-group-talks-keep-kohls-management-team-after-sale-sources-2022-06-21/

It is also unclear if the financing will fall through. I'm not sure if a lower acquisition price makes the financing any easier.

All told there is a lot of uncertainty. And the market hates uncertainty. But with $KSS at $38.60 it seems to be pricing in quite a low likelihood of a deal. Quite a bit of upside to the low 50s.

So now I'm thinking of maybe getting back low a smaller amount of $KSS. Am I nuts?

Stepner

[Richard M]

i don't think you're nuts.

but SAVE - JBLU increased their offer price. huge spread remains. take a look.

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Richard Mordini

[Andrew Stepner]

My sourcing of info on SAVE/JBLU is fairly nonexistent whereas I have good info flow on KSS. I'd need to see the light on SAVE/JBLU for where my edge is over the market. I don't have any edge for it as of now.

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