Hudson's Bay special committee says Catalyst bid not 'superior'

Private equity firm Catalyst Capital Group Inc’s unsolicited bid for Hudson’s Bay Co is not “superior” to an agreed upon deal with a consortium led by its executive chairman, the Canadian retailer’s special committee said on Monday.

Catalyst, which already owns about 17.5% of the company, last week made a competing bid of C$11 per share for the Saks Fifth Avenue owner, challenging the C$10.30 per share offer of the group led by executive chairman Richard Baker.

Catalyst said late Monday it has filed a notice with the Ontario Securities Commission to review Baker’s offer.

“Catalyst seeks to permanently prohibit the Baker Group from acquiring securities of HBC,” the firm said in a statement. It also requested the commission to postpone a Dec. 17 shareholders meeting to consider the chairman’s deal.

However, Hudson’s Bay special committee said it continued to recommend that minority shareholders vote for the special resolution approving the offer from the consortium.

As of Monday’s close of C$9.74, Hudson’s Bay shares advanced more than 50% since a Baker-led group made an offer to take the retailer private in June.