Rival Bids for Hudson’s Bay

CBJ — Hudson’s Bay has received a takeover offer from Catalyst Capital Group in a deal said to be worth $11 per share in cash.  That betters the $10.30 per share offer that had been made by HBC chairman Richard Baker and a group of investors.

Catalyst Capital is an investment firm, which currently owns about 18% of HBC.

Baker’s offer requires support from a majority of the HBC shareholders, excluding the shareholders behind the bid and their affiliates, as well as approval by a 75% majority vote at a special meeting of shareholders that HBC expects to hold in December. In other words, the bid by Catalyst Capital is going to make it very difficult for Baker’s offer to go through, certainly in this current form.