(Reuters) – A consortium of investors including Arkhouse Management and Brigade Capital has filed a $5.8 billion offer to take over the Macy’s department store chain, a person familiar with the matter said on Sunday.

Arkhouse Management, an investment group specializing in real estate, and Brigade Capital Management, an asset manager, made an offer of $21 per share for Macy’s shares they do not already own, the source said .

This is more than 20% higher than Macy’s stock’s closing price on Friday ($17.39).

The Wall Street Journal first reported the information, citing unidentified sources.

According to the newspaper, Arkhouse and Brigade consider Macy’s to be undervalued in the public markets and have signaled that they are willing to raise their bid, subject to due diligence. They also sent a letter from an investment bank stipulating that they have the capacity to raise the funds to carry out the operation.

Reuters had no immediate comment from Macy’s, Arkhouse and Brigade.

Macy’s has a market valuation of approximately $4.77 billion. Its stock is down more than 15% over the whole year on Wall Street.

(Reporting Juby Babu in Bangalore; Nicolas Delame and Jean Terzian)

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