Franchise Group (FRG.O) is considering lowering its bid for department store chain Kohl’s Corp (KSS.N) to closer to $50 per share from about $60 apiece, CNBC reported on Wednesday, citing a source familiar with the deal talks.
Shares in Kohl’s fell more than 10% after the report.
Franchise is considering whether buying Kohl’s is the best use of the Vitamin Shoppe owner’s capital, according to the report.
Kohl’s and Franchise Group did not immediately respond to Reuters requests for comment.
Earlier this month, Kohl’s entered into exclusive negotiations with Franchise over a potential sale of the retailer, valuing it at nearly $8 billion.
Franchise, which also owns and operates the Buddy’s Home Furnishings retail chain, was in talks to keep the Kohl’s top management team, including its Chief Executive Michelle Gass, Reuters reported on Tuesday.