A special committee at Hudson’s Bay rejected an offer by private-equity firm Catalyst Capital that values the Canadian retailer at more than CA$2 billion (US$1.5 billion), giving the upper hand to a lower bid by the company’s chairman.
The offer presented last week by Catalyst is “not reasonably capable of being consummated,” the committee said in a statement late Monday, December 2. Catalyst’s proposal of CA$11 a share represented a 6.8% premium to the CA$10.30 a share that Hudson’s Bay Chairman Richard Baker and his partners agreed to pay in October, and which the committee and the board backed.
Baker and his allies confirmed that they weren’t interested in any transaction that would result in the sale of their interest in Hudson’s Bay, the committee said in its statement. Since the group owns 57%, and the Catalyst offer requires at least three-quarters of votes, it means the transaction can’t be completed, the committee said.
According to Bloomberg, the response is the latest twist in the battle for the struggling retailer, which Baker said he wants to turn around outside the glare of public markets. The rivalry next moves to December 17, when shareholders are set to vote on Baker’s offer.
Full Content: Bloomberg
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