A privatization bid for Hudson’s Bay Co. will soon be voted on by minority shareholders, in a Dec. 12, 2019 story. (Photo by THE CANADIAN PRESS)

Boosting bid to take HBC private ‘most likely path’ to success, analyst says

TORONTO — An analyst says the insider group behind a privatization bid for Hudson’s Bay Co. will need to boost its offer to convince minority shareholders to vote for the proposal.

CIBC analyst Mark Petrie says an increased bid from the group led by executive chairman Richard Baker is “the most likely path” to privatization, but ”it is far from clear whether this is in the cards.”

Minority shareholders are set to vote Tuesday on the $10.30 per share offer from the Baker-led group, while the deadline to vote by proxy is Friday.

Petrie says it “appears increasingly unlikely” that minority shareholders will approve the deal given dissident shareholder Catalyst Capital Group owns a roughly 17.5 per cent stake and a proxy advisory service has recommended shareholders to vote no.

Two other proxy advisory services have, however, encouraged shareholders to vote for the proposal.

The bid also faces a lawsuit and ongoing hearing at the Ontario Securities Commission — both seeking to block the offer.

“We continue to believe a modestly boosted bid from the majority group should be enough to get the deal done, but at this stage handicapping probabilities is futile,” Petrie wrote.

HBC shares are trading 16 per cent below the offer price after gaining 22 cents or 2.6 per cent to $8.65 on the Toronto Stock Exchange.

This report by The Canadian Press was first published Dec. 12, 2019.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Stettler son accused of murdering his father

The RCMP have laid charges against a son charged with killing his… Continue reading

Canada to give $25,000 to families of each Canadian who died on Flight PS752

OTTAWA — Families of the Canadian victims on the Ukrainian passenger jet… Continue reading

Ottawa to avoid selling Trans Mountain pipeline so long as risks remain

OTTAWA — The federal government is studying the best options for Indigenous… Continue reading

Beware of Bitcoin scammers

Red Deer butcher and bistro spreading the word about bitcoin scams

RCMP arrest two suspects in November armed robbery in Innisfail

RCMP searching for Devyn Michael Hendriksen

Fashion Fridays: Look your best this year

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

Your community calendar

Jan. 16 Red Deer Branch of the Alberta Genealogical Society monthly meeting… Continue reading

Local Sports: Aussie connection paying off for RDC Kings

The RDC volleyball Kings have put together a nice pipeline with Australia.… Continue reading

Anthony Cirelli scores first career hat trick, Lightning beat Jets

Lightning 7 Jets 1 WINNIPEG — Anthony Cirelli scored his first career… Continue reading

Canada to give $25,000 to families of each Canadian who died on Flight PS752

OTTAWA — Families of the Canadian victims on the Ukrainian passenger jet… Continue reading

Ottawa to avoid selling Trans Mountain pipeline so long as risks remain

OTTAWA — The federal government is studying the best options for Indigenous… Continue reading

Henderson, Inbee Park tied for lead in LPGA season opener

LAKE BUENA VISTA, Fla. — Canada’s Brooke Henderson parlayed four birdies and… Continue reading

Most Read