Nordstrom soars on report that its namesake family wants to own a greater stake (JWN)

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• Nordstrom shares rose as much as 11% Wednesday after The Wall Street Journal reported the company’s founding family is in talks to boost its stake in the retailer.
• The family previously attempted to buy the company out for $50 per share in 2018. The plan fell through after a board committee deemed the price too low.
• Nordstrom remained up by nearly 8% even as the three major US stock indexes sold off on the Fed’s rate-cut announcement.
• Watch Nordstrom trade live here.

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Nordstrom shares jumped as much as 11% in Wednesday trading after The Wall Street Journal reported the company’s founding family is looking to increase its stake in the retail chain.

The family members seek to boost their one-third stake to over 50%, the report said, citing people familiar with the matter.

The Journal reported that the family could buy shares back at a premium. If that happens, it could increase the value of outstanding shares. 

A previous family-led buyout offer of $50 per share fell through in 2018 after a board committee deemed the price too low. The family has long hoped to take the company private in order to organize a major overhaul, according to Bloomberg.

Nordstrom stock sold for $33.27 as of 3:45 p.m. ET Wednesday.

The company remained up about 7.7% for the day despite sharp selloffs spurred by the Fed’s afternoon rate-cut announcement. The Nasdaq Composite and S&P 500 fell by as much as 0.7%. The Dow Jones Industrial Average was down about 0.8%.

The surge represents the stock’s largest intraday increase since August 2018. Nordstrom shares are down about 29% year-to-date.

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Source: Business Insider – feedback@businessinsider.com (Ben Winck)