The largest US department store retailer has been approached by Canada's Hudson's Bay, the owner of Saks and Lord & Taylor, The Wall Street Journal reported, citing people familiar with the matter.
Macy's stock rose 5.2% on Thursday on that report.
Macy's shares were up 6.45% to $32.70 in mid-day trading.
Talks between the two companies are in preliminary stages, according to the publication, adding a deal to acquire Macy's real estate as one possibility. Hudson's Bay already operates the Saks Fifth Avenue and Lord & Taylor brands. During an interview with Hearst Connecticut Media that evening, Saks CEO Mark Metrick alluded to Saks' success in the face of other department store closings, such as Macy's, without calling them out by name.
Cowen's Oliver Chen explored the possibility of a Macy's acquisition in a note released this morning before the Hudson's Bay news, and concluded that "a deal could be hard". Lundgren is retiring as CEO later in this quarter, and previously wasn't planning on selling the company.
Macy's, which also owns the upscale Bloomingdale's chain, has a market value of $10 billion, which would make it a big bite for HBC, whose market value is just under $2 billion.
Mysterious ancient 'lost continent' discovered at the bottom of the Indian Ocean
Although Mauritius is only 8 million years old, some zircon crystals on the island's beaches are nearly 2 billion years old. Scientists have discovered the evidence of a "lost continent" deep under the Indian Ocean.
That same year, the company formed two real estate joint ventures, USA -based Simon Property Group Inc and Canada's RioCan Real Estate Investment Trust.
Macy's Inc (NYSE:M) stock was up today on rumors that the retailer is considering a sale.
In 2015, Smith said that the company's real estate was worth more than $20 billion alone.
Several sources said that Smith is seeking board seats at Macy's.
The retailer has been under pressure from activist investors displeased with its stock performance to sell of its stores into a real estate investment trust or look at ways of wringing out money from its physical assets.
Activist investor Starboard Value held around 1 percent of Macy's stock as of September 30 past year, making it the company's 15th largest shareholder.