NEW YORK, United States — A special panel of Hudson's Bay Co reviewing a C$1.74 billion take-private bid for the retailer, proposed by Chairman Richard Baker and a group of shareholders, said the offer was inadequate based on an initial analysis.

The Baker-led consortium, owning 57 percent of Hudson's Bay, had offered to buy the struggling retailer for C$9.45 per share in June.

Shares have since surged more than 50 percent and gone past Baker's bid, closing at C$9.79 on Thursday

Activist shareholder Jonathan Litt had lambasted the bid as "woefully inadequate" then, saying the company was worth double what the group was offering.

He had also asked the committee of independent directors reviewing the bid to hire an independent investment bank to evaluate the value of Hudson's Bay's real estate and retail banners.

In July, private equity firm Catalyst Capital Group Inc offered to buy a near C$150 million stake in Hudson's Bay, and said it would oppose Baker's take-private proposal.

The special committee on Friday said it was not in a position to make a recommendation on Catalyst's offer to buy up to 14.85 million shares of Hudson's Bay at C$10.11 per share.

The committee and its financial advisors expect to meet with representatives of various shareholders next week to discuss the buyout proposal and Catalyst Capital's offer.

By Debroop Roy; Editor: Shailesh Kuber