Deals
Hudson’s Bay Rejects $1.5 Billion Bid From Catalyst Capital
- Response gives upper hand to rival bid by company’s chairman
- Canada retailer says Catalyst offer not capable of succeeding
A delivery truck enters the Hudson's Bay head office and flagship store in Toronto.
Photographer: Cole Burston/BloombergThis article is for subscribers only.
A special committee at Hudson’s Bay Co. rejected an offer by private-equity firm Catalyst Capital Group Inc. that values the Canadian retailer at more than C$2 billion ($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. Catalyst’s proposal of C$11 a share represented a 6.8% premium to the C$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.