Reuters An investor group consisting of Arkhouse Management and Brigade Capital has made a 5.8 billion offer to take department store chain Macy39;s private, according to a person familiar with the matter on Sunday.

Arkhouse Management, a realestate focused investing firm, and Brigade Capital Management, a global asset manager, submitted a proposal to acquire the Macy39;s stock they dont already own for 21 a share on Dec. 1, the person said. The Wall Street Journal reported the offer earlier Sunday afternoon.

The offer for the Bloomingdale39;s parent is a 20.76 premium from its closing at 17.39 on Friday.

The group already has a big stake in Macy39;s through Arkhousemanaged funds and has discussed the proposal with the department store chain, whose board subsequently met to discuss the offer. It isn39;t clear how the retailer views the proposal, the person familiar with the matter said.

Arkhouse and Brigade believe Macy39;s is undervalued in the public markets and have indicated a willingness to raise the offer subject to due diligence, the WSJ report said, adding that an investment bank has provided a letter supporting the group39;s ability to raise the necessary financing to get through the deal.

Macy39;s declined to comment, while Arkhouse and Brigade did not respond to a Reuters request for comment.

The retailer crushed analysts39; estimates for quarterly profit on lower inventories and strong demand for beauty products in November, signaling that attempts to…