Kohl’s poison pill slammed by activist investor group


New York – Macellum Advisors accused Kohl’s board members of lacking objectivity after the retail company rejected a $9 billion buy-out offer last week.

Kohl’s board on Feb. 4 asserted that the offers of interest it had received low-balled valuations of its business in comparison to the company’s future growth and cash flow projections. It also immediately put into place a new shareholder rights plan, which is meant to stave off hostile takeover actions. The poison pill provision runs to Feb. 2, 2023.

Jonathan Duskin, managing partner at Macellum, characterized the action as punitive to any investor that may seek more active engagement with the Board. The investment firm is a long-term holder of nearly 5% of the outstanding common shares of Kohl’s Corporation.

“It seems to us that the board is taking unprecedented steps to derail a credible process and kill interest among the growing crop of possible buyers of Kohl’s,” he said.

Macellum plans to put forward a slate of nominees for the retailer’s board. Duskin indicated the announcement would come within days and described the firm’s candidates as “far more aligned, experienced and openminded when it comes to pursuing all paths to maximizing value.”



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