Kohl's soars 36% as the department store chain receives 2nd takeover bid

• Kohl's shares jumped 36% on Monday following a report of interest by Sycamore Partners in the retailer.
• Kohl's confirms receiving 'letters expressing interest' in acquiring the company.

Kohl's shares soared by more than a third Monday after the retailer reportedly received a takeover bid from private equity firm Sycamore Partners, which would mark the second reported buyout offer in a week.

Kohl's ahead of the opening bell confirmed that it has received transaction offers.

Shares surged as much as 36% to $63.85, the highest price since May 2021. The stock then trimmed the gain to 31%. The stock rocketed higher after Bloomberg on Sunday reported Sycamore Partners reached out to Kohl's about a deal.

The news about Sycamore followed last week's Wall Street Journal article reporting that Acacia Research offered to buy Kohl's for $64 a share in cash, representing a bid of roughly $9 billion.

Kohl's has "received letters expressing interest in acquiring the company," it said in a notification Monday. Kohl's said its board will determine the course of action it believes is in the best interests of the company and its shareholders.

Kohl's has undertaken a turnaround plan in an effort to improve shareholder value. Wall Street activist investors in recent weeks have put pressure on Kohl's to sell or make major changes to the company.

The Bloomberg report, citing people familiar with the matter, said it wasn't clear how much Sycamore would be willing to pay for that transaction. The report noted Sycamore has experience in purchasing retailers, including the 2017 buyout of Staples.

Acacia Research is controlled by Starboard Value, an activist hedge fund. Acacia told Kohl's it received a "highly confident" letter from a bank stating it will be able to attain a debt-financing package for a portion of its bid, the Journal reported, citing sources.

Reuters earlier last week reported that Kohl's was in talks with Acacia about a bid.