Nordstrom, Inc. (NYSE: JWN) is off to an incredibly strong day in the market today. It all started with an early morning rumor. However, recently, that rumor was confirmed, exciting investors and sending the stock upward. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:19), JWN is trading at $45.85 per share after a gain of $5.37 per share or 13.27% thus far today.
JWN May Be Going Private
As mentioned above, the gains on Nordstrom started early this morning with rumors that the company may go private. However, more recently, the rumors that were circling the market were confirmed. The company is indeed thinking about going private.
In an attempt to consider all options here, the Board of Directors at JWN has formed a special committee of independent directors that will act on behalf of the company. The special committee will explore the concept of selling Nordstrom. The company announced that Centerview Partners LLC will be the committee's financial advisor and Sidley Austin LLP will be the company's legal counsel during the talks. In a press release, JWN had the following to offer...
“Members of the Nordstrom family – Company Co-Presidents Blake W. Nordstrom, Peter E. Nordstrom, and Erik B. Nordstrom, President of Stores James F. Dorstrom, Chairman Emeritus Bruce A. Nordstrom, and Anne E. Gittinger – Have formed a group (the “Group”) to explore the possibility of pursuing a “going private transaction” involving the acquisition by the Group of 100% of the outstanding shares of common stock of the Company. The Group has not made a proposal to the Company regarding any such transaction.”
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What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on JWN. In particular, we're interested in whether or not the company will be taken private. Nonetheless, we'll continue to follow the story closely and bring the news to you as it breaks!
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