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Engine Capital urges Kohl's to consider e-commerce separation - WSJ

The logo and trading informations for Kohl's is displayed on a screen on the floor at the NYSE in New York

(Reuters) - U.S.-based hedge fund Engine Capital LP is urging Kohl's Corp to consider a sale of the company or a separation of its e-commerce business, The Wall Street Journal reported on Sunday.

The activist investor, which owns a roughly 1% Kohl's stake, wants the department-store chain to examine the two alternatives to improve its lagging stock price, the report said, citing a letter sent to Kohl's board on Sunday.

Engine argues that the company has underperformed both the S&P 500 and other retailers in recent years, the report said https://on.wsj.com/3yapXCV.

Kohl and Engine Capital did not immediately respond to Reuters' request for comment.

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In the letter cited by the newspaper, the activist investor also said that assuming online sales revenue of around $6.2 billion, Kohl's digital business alone would be worth $12.4 billion.

Engine also added it believes there are private-equity firms that would pay at least $75 a share and that interactions with potential buyers suggest they could do so by monetizing Kohl's real estate, the report said.

(Reporting by Akriti Sharma in Bengaluru; Editing by Daniel Wallis)