The Globe and Mail reports in its Monday, Dec. 9, edition that the takeover battle for Hudson's Bay Co. is set to heat up ahead of a key regulatory hearing this week, after an influential proxy adviser, Institutional Shareholder Services, urged investors to reject a $1.1-billion offer led by executive chairman Richard Baker. The Globe's David Milstead and Jeffrey Jones write that ISS recommended a "No" vote on the Baker group's offer of $10.30 a share for HBC. ISS cited "significant defects" in HBC's sale process that prevented investors from getting a higher bid. Newton Glassman's Catalyst Capital Group has made an alternative proposal, saying it is willing to pay $11 a share. A shareholder vote on the offer by the Baker group is set for Dec. 17. A special committee of the board of directors has recommended the Baker bid, which must be approved by a majority of the other shareholders. The two sides in the takeover battle are scheduled to go head to head at the Ontario Securities Commission on Wednesday, with Catalyst seeking to have the Baker group's offer blocked or the shareholder vote postponed. Hearings are scheduled for Wednesday through Friday, but the agenda could change.