The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
NEW YORK, United States — Hudson's Bay Co. Chairman Richard Baker and his partners have approached minority shareholders, including Catalyst Capital Group, about potentially raising their offer to take the Canadian retailer private, according to people familiar with the matter.
Baker and a group of allies have floated the idea of raising their offer to around C$11 a share from C$10.30 a share, roughly the same price Catalyst Capital offered for the owner of Saks Fifth Avenue in November, said the people who asked not to be identified because the matter is private. The Baker group collectively own a 57 percent stake in Hudson’s Bay, but likely needs a majority of minority shareholders for a deal to go through.
There are no substantive conversations ongoing between Catalyst and the Baker group at this time, the people said. Catalyst remains concerned about the Baker group’s ability to proceed with a transaction after several issues were raised by the Ontario Securities Commission last month about its bid, one of the people said.
Representatives for Catalyst and the Baker group declined to comment. Hudson’s Bay didn’t immediately respond to a request for comment.
ADVERTISEMENT
Catalyst, which owns a 17.5 percent stake in the retailer, remains a substantial hurdle for the controlling shareholders to overcome. The Toronto-based firm’s stake amounts to about 32 percent of the minority shareholder votes.
Preliminary tallies earlier this month showed that the Baker group’s earlier C$1.9 billion ($1.5 billion) bid for the company had fallen short of the necessary support from investors to proceed before the vote was delayed by regulators, according to people familiar with the matter.
Shares in Hudson's Bay rose as much as 24 percent on Tuesday. An earlier report from Women's Wear Daily said the parties could reach a deal within 48 hours. The stock was up 15 percent to C$9.40 as of 10:28 a.m. in Toronto, giving the company a market value of about C$1.73 billion.
Investor Opposition
Minority investors including Catalyst have opposed the Baker bid, saying it undervalues the company’s real estate and that it didn’t provide enough disclosure to shareholders. The Ontario Securities Commission endorsed a complaint by Catalyst and ordered a delay in the shareholder vote while seeking increased disclosure on the Baker bid.
Catalyst, which is run by Newton Glassman, had made its own proposal that was rejected by a special committee of the board because Baker’s group was adamant it wouldn’t tender its shares.
By Scott Deveau, Sandrine Rastello; Editors: Sally Bakewell, Jonathan Roeder, David Scanlan
The companies agreed to cap credit-card swipe fees in one of the most significant antitrust settlements ever, following a legal fight that spanned almost two decades.
In an era of austerity on Wall Street, apparel businesses are more likely to be valued on their profits rather than sales, which usually means lower payouts for founders and investors. That is, if they can find a buyer in the first place.
The fast fashion giant occupies a shrinking middle ground between Shein and Zara. New CEO Daniel Ervér can lay out the path forward when the company reports quarterly results this week.
The performance coach and Allbirds’ co-founder discuss the transformative power of togetherness in fostering a culture of excellence.