What: The Mexican high-end department store has utilized a surplus of cash to diversify assets geographically by purchasing 293.8 million USD of Nordstrom stock.

Why it is important: Nordstrom has enacted a 'Poison Pill' plan to make a hostile takeover more difficult and expensive by allowing current shareholders to buy at an extreme discount ultimately diluting the pursuer's stake.

Liverpool is now one of the top shareholders with the largest shareholder being the grandson of Nordstrom’s founder who reportedly holds 15.86% followed by his sister who holds 9.68%. The department store chain has seen its shares rise 10% since the start of this year with double-digit revenue growth across its business lines in Q2. On the other hand, Nordstrom has seen the value of its shares drop close to 19% since the start of this year due to the economic pressures that customers have been facing.

The Nordstrom family offered to buy shares at 50 USD in 2018 but the board refused. Now the store shares are trading between 19 and 20 USD per share. Nordstrom has set in place a plan of action to protect the company from an unplanned takeover due to a company or individual acquiring more than 10% of shares, yet denies its connection to Liverpool's recent stake in the company.

The 'Poison Pill' plan demonstrates the department store's desperation to prove that its strategies are working despite time running out in the minds of shareholders.

Mexican high-end retailer Liverpool acquires passive stake in Nordstrom

Mexican high-end retailer Liverpool acquires passive stake in Nordstrom - Source 2

Mexican high-end retailer Liverpool acquires passive stake in Nordstrom - Source 3