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Macellum asks Kolya to take a seat on the board of directors, and Kolya to explore the possibility of selling

Customers enter a Kohl’s store in Peoria, Illinois.

Daniel Acker | Bloomberg | Getty Images

A hedge fund activist, Macellum Advisors, has asked Kohl’s to consider selling itself, and now he wants at least one seat on the retailer’s board. letter published on Tuesday.

Macellum, which owns about 5% of Kohl’s shares, said it also wants Kohl’s to publicly commit to a process in which it considers strategic alternatives.

The letter came a day after Starboard Value-backed Acacia Research confirmed an offer to buy Kohl’s for cash at $64 a share, or roughly $9 billion, according to a filing with the Securities and Exchange Commission.

Private equity firm Sycamore Partners is also preparing an offer for Kohl’s at $65 a share, sources told CNBC Sunday.

Kohl’s shares rose 36% on Monday to close at $63.71. Shares fell about 1% in trading on Tuesday amid a broader sell-off in the market, leaving Kohl with a market capitalization of about $8.8 billion.

Kohl’s said in a statement Monday that it had received letters of interest in acquiring the business, but did not name any potential bidders.

A spokesman for Kohl’s did not immediately respond to a CNBC request for comment on the latest letter from Macellum.

“We believe that the best risk-adjusted way forward for shareholders now is through a credible and open process to evaluate the complete sale of the company at an attractive premium,” wrote Macellum Managing Partner Jonathan Duskin. “Frankly, we don’t believe that the current Board will be able to manage this process on its own.”

Duskin added that his firm could sue or hold another proxy competition if Kohl’s board tries to slow down the sale.

Macellum is putting pressure on Kohl less than a year after the hedge fund, in a group with a handful of other activists, reached an agreement to include three directors on Kohl’s board.

Find the complete letter from Macellum here.

— CNBC Leslie Picker contributed to this report.


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