March 4 Reuters Macy39;s shares jumped 16 on Monday after investors Arkhouse Management and Brigade Capital sweetened their takeprivate bid over the weekend, valuing the U.S. department store operator at 6.58 billion.

They raised the offer price to 24 per share from 21 for the stake they do not already own, representing a 38 premium to Macy39;s closing price on Dec. 8 when deal talks first emerged.

The retailer39;s shares were hovering a little below 21 on Monday, their highest level since Dec. 11, and also putting them on track to reverse the losses for the year.

Macy39;s is yet to open its books to the bidders as it was reviewing the new offer after rejecting in January a prior bid from Arkhouse on concerns around deal financing and valuation.

The real estatefocused investing firm has said it has identified global lenders who will commit to financing the deal if due diligence was granted, and also left the door open for a higher bid

That would make Macy39;s board consider the offer more seriously, Citi analyst Paul Lejuez said.

The company has struggled to maintain its sales growth and profitability due to competition from cheaper physical and ecommerce offerings, as well as a valuebased shopping pattern due to elevated inflation.

Macy39;s should cooperate with the investment group and pursue a possible sale. If it refuses to do so, it runs the risk of a hostile takeover, said David Swartz, an analyst with Morningstar Research.

Arkhouse, which has an economic…