The Globe and Mail reports in its Wednesday, Sept. 11, edition that Catalyst Capital Group has amassed a 16-per-cent interest in Hudson's Bay Co. ($9.95) as the private-equity firm seeks to stymie a privatization bid from the retailer's executive chairman Richard Baker. The Globe's Jeffrey Jones writes that
Catalyst said Tuesday it controls 29.4 million HBC shares after a tender offer for $10.11 a share it completed last month. The firm, led by financier Newton Glassman, spent $187-million on the stock, which added to a position it had previously purchased.
Mr. Baker is leading a $1-billion bid to take HBC private, and his group, including Rhone Capital, office-sharing company WeWork, the Abu Dhabi government's investment vehicle and U.S. investment firm Abrams Capital Management, controls 57 per cent of the shares outstanding. A special committee of the HBC board has yet to issue its formal response to Mr. Baker's $9.45-a-share proposal, but it already said it believes the offer to be inadequate.
For the bid to be successful, a majority of the minority shares must be voted in favour, and Catalyst's increased position makes that prospect look more remote, at least at the price proposed.
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