July 31, 2019 / 5:55 PM / 6 months ago

Nordstrom family prepares proposal for major stake in retailer - WSJ

FILE PHOTO: The Nordstrom store is pictured in Broomfield, Colorado, February 23, 2017. REUTERS/Rick Wilking/File Photo

(Reuters) - Shares of Nordstrom Inc (JWN.N) rose 8% on Wednesday after the Wall Street Journal reported that members of the retailer’s founding family are in the early stages of discussing a proposal to boost their roughly one-third stake to over 50%, citing people familiar with the matter.

While it is not clear how the family would increase its stake, one possibility is through a share buyback at a premium, the newspaper reported on Wednesday, citing one of the people familiar with the matter, adding that there is no guarantee it will follow through.

“We don’t comment on market rumors or speculation,” a company spokeswoman said.

In 2018 the company ended discussions with the founding family over taking the department store private after failing to agree on an acceptable price.

Shares of the department store operator were up about 8% at $33.11 in post-market trading.

Reporting by Soundarya J in Bengaluru and Melissa Fares in New York; Editing by Bernard Orr and Sandra Maler

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