Fashion & Style

HBC’s Bid To Go Private Hits Major Snag

The Catalyst Capital Group Inc. said Thursday that shareholders including itself, representing 28.24 percent of Hudson’s Bay Co.’s total common shares outstanding, intend to vote against the bid to take HBC private by Richard A. Baker and other major shareholders representing 57 percent of the shares.
However, sources close to HBC disputed Catalyst’s contention and stated that HBC has sufficient support from minority shareholders required to get the privatization deal done. For Baker’s bid to go through, approval by a majority of the 43 percent of the shares not owned by Baker and his group is required.
The sources also indicated that one shareholder activist, Land & Buildings Investment Management, has sold all or virtually all of its shares in HBC, raising the chances of Baker’s bid to go through. Lands & Buildings has been pressuring HBC to increase shareholder value and monetize real estate.
Importantly, a special committee of HBC’s board last week approved the bid by Baker, governor and executive chairman of HBC, and other key shareholders, to take HBC private for 10.30 Canadian dollars a share.
“Over the last four months, with the assistance of our independent financial and legal advisers, we have conducted a thorough evaluation of the shareholder group’s

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