Investor buys stake in Macy’s as possible takeover target

Greenlight Capital, the hedge fund firm led by David Einhorn, made a new investment in Macy’s in the fourth quarter, saying the retailer could become a takeover target, according to a letter to investors that was obtained by Bloomberg News.

A private equity firm and a real estate investment trust could team up to purchase the company and “unlock the value” of its land and buildings, Greenlight said in the letter.

In discussing a real estate deal, Einhorn echoes remarks from activist investor Starboard Value, which has been pushing for Macy’s to tap its properties since July. While Macy’s rejected that idea last year, the math may have changed after the shares lost more than half their value from a July high of $72.80, the New York-based hedge fund firm wrote.

Bloomberg News

This story was originally published January 19, 2016 at 1:41 PM with the headline "Investor buys stake in Macy’s as possible takeover target."