Nordstrom (JWN) shares rose sharply after Reuters reported that the Nordstrom family is offering preferred equity to potential private equity partners to fund a buyout of the upscale department store.
XAutoplay: On | OffLeonard Green & Partners, Apollo Global Management (APO) and KKR (KKR) are a few of the private-equity names in talks with the family, sources told Reuters, which added that the Nordstrom family has additionally sought out sovereign wealth funds, public pension funds and “firms that invest exclusively on behalf of rich families.”
Nordstrom announced in June that it was exploring the possibility of going private.
Shares rose 2.3% to 48.97 on the stock market today, decisively above their 200-day line after hitting resistance at the key level for some time. Macy’s (M) rose 2.8%, as department store stocks climbed broadly. Kohl’s (KSS) added 3.2% and J.C. Penney (JCP) 2.6%.
Meanwhile, Republican leaders said Thursday that a border adjustment tax (BAT) will not be included in tax-reform talks.
Shares of Wal-Mart (WMT) rallied 1.1%, approaching a buy point. The retail giant was part of a coalition that raised concerns about the tax, arguing that taxes on imported goods would weigh on costs to customers and impact retail job growth. Under BAT, exports would not have been taxed.