T. Rowe Price says it plans to back Kohl's nominees in proxy fight with Macellum
Reuters
Published Apr 20, 2022 08:31PM ET
Updated Apr 20, 2022 08:55PM ET
By Svea Herbst-Bayliss
BOSTON (Reuters) -T. Rowe Price Associates, one of the biggest investors in Kohl's Corp (NYSE:KSS), said it plans to back all of the department store's directors, dealing a setback to activist hedge fund Macellum Advisors as it tries to take control of the board.
"We intend to vote FOR the 13 nominees presented by the Kohl’s board. We do not intend vote on the Macellum card,
and we will not support any of its 10 nominees," T. Rowe Price said in a case study about how it intends to vote.
Investors will be able to vote at the May 11 meeting. T. Rowe Price owned 6.8 million shares or 5.29% of the company at the end of December.
Macellum, led by Jonathan Duskin, has accused Kohl's of not doing enough to improve its business. The fund called for the company to put itself up for sale, which it is now doing by reviewing potential bidders.
The battle for control of Kohl's boardroom has become one of this year's most contentious proxy battles and occurs as the company is reviewing bids from potential buyers.
Last week Franchise Group (NASDAQ:FRG) Inc, owner and operator of retail stores such as The Vitamin Shoppe and Buddy's Home Furnishings, entered the bidding with a $9 billion indicative offer.
Kohl's has said that its investment bankers have held conversations with more than 20 potential buyers in the last months.
This is also the second time in two years that Macellum has pushed for changes at Kohl's. It sought to replace nine board directors last year in a campaign conducted with hedge funds Ancora Holdings Inc and Legion Partners Asset Management LLC. The investors agreed to drop that challenge when Kohl's expanded the size of its board by three directors.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.