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Starboard Renews Pressure on Macy's to Pursue Real Estate Deals

Activist hedge fund Starboard Value stepped up pressure on Macy’s Inc. to squeeze money out of the department-store chain’s real estate, which the firm values at $21 billion.

Separating the properties into two or more entities would create $10 billion in shareholder value, the investment firm said in a presentation that was sent to Macy’s. The idea would be to put the chain’s iconic properties, such as its flagship location in Manhattan, into one joint venture, while placing its mall-based real estate into another. An operating company would then continue to run the stores.