Kohl’s Stock Is Rising. Another Bidder May Have Emerged.

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Are two department stores better than one? The owners of JCPenney may think so, if reports that they are the latest potential suitors for

Kohl’s

are true.

On Monday anonymous sources told the New York Post that mall owner

Simon Property Group

(ticker: SPG) and

Brookfield Asset Management

(BAM), which holds retail assets among its broader-real estate portfolio, were willing to bid $68 a share for Kohl’s (KSS). That offer values the department store at approximately $8.6 billion.

Kohl’s stock is climbing 3.7% at recent check, to $59.46, while Simon Property and Brookfield shares were down 0.8% each, to$124.82 and $51.26, respectively.

“We do not comment on rumors or speculation,” Kohl’s said in response to a request for comment. Simon Property and Brookfield didn’t respond to Barron’s.

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If Simon and Brookfield are in the running, they’ve joined what may be an already crowded field. Companies ranging from Franchise Group (FRG) to Hudson’s Bay and private-equity firms Leonard Green & Partners and Sycamore Holdings have also been linked to possible bids for Kohl’s.

Interestingly, although department stores have long been staples in malls, including those operated by Simon, in recent years Kohl’s bulls have often touted its off-mall presence as an asset.

Optimism that a deal could get done—for reasons Barron’s has outlined previously—have helped push Kohl’s shares up more than 21% year to date, outperforming its department-store cohort.

The company is currently in a proxy battle with activist investor Macellum, ahead of the company’s upcoming annual meeting, slated for May.

Write to Teresa Rivas at [email protected]