J. Rogers Kniffen would rather see Macy's die at the helm of TJX Companies, parent to TJ Maxx, than die at the hands of Jeff Smith and Starboard Value [our unpleasant thoughts on Macy's hedge funds]
The firm notes that TJX could buy Macy's and avoid the whole split and REIT shenanigans that Smith has proposed. TJX is twice Macy's size and it would be an easy way to avoid a hard split - where breaking real estate from retail has proven difficult [More on that].
On TJX-Macy's - "We never got to the point where the two values together were worth doing the deal. Today, they are worth doing the deal" - Kniffen.