TORONTO, Canada — Catalyst Capital Group Inc on Wednesday offered to buy Hudson's Bay Company in deal that valued it at C$2.03 billion ($1.53 billion), challenging the Canadian retailer's agreed deal with a consortium led by its executive chairman, Richard Baker.

Shares of the Saks Fifth Avenue owner rose about 11 percent to C$9.80 in early trading.

Private equity firm Catalyst, which owns 17.5 percent of Hudson's Bay, has offered C$11 per share, topping Baker's raised C$10.30 per share proposal.

Baker's consortium already owns 57 percent of Hudson's Bay and has previously informed the company it would block a sale to another party.

Catalyst also said on Wednesday it had filed a complaint with the Ontario Securities Commission over potential securities law violations in the consortium's C$1.9 billion deal.

Hudson's Bay and Baker's consortium did not immediately respond to requests for comment.

Reuters reported earlier this month that Catalyst was seeking financing for a rival bid for the company.

The buyout firm's all-cash offer represents a premium of 24.5 percent to Hudson's Bay's closing price on Tuesday.

Catalyst also said it is prepared to consider raising the offer based on its due diligence and is open to allow other shareholders to be co-equity sponsors to its offer.

By Uday Sampath; editor: Sriraj Kalluvila.