Hudson’s Bay rejects Catalyst Capital Group’s 1.5 billion offer

Hudson’s Bay acquisition continues unsolved. The Canadian group, owner of Saks Fifth Avenue, has rejected the bid of the private-equity firm Catalyst Capital Group that had offered 2 billion Canadian dollars (1.5 billion dollars) for the company.

The proposal of The Catalyst Capital Group was eleven Canadian dollars (8.2 dollars) per share and exceeded the initial offer presented by the chairman of Hudson’s Bay, Richard Baker, of 10.30 Canadian dollars (7.7 dollars) per share. This offer was accepted by the committee and a vote among shareholders was scheduled for December 17.

Hudson’s Bay has stated that Catalyst Capital Group’s offer is “illusory”

Catalyst Capital Group bid has been dismissed by Hudson’s Bay committee which, in a statement, has considered “not reasonably capable of being consummated” and has described it as “illusory”. Richard Baker confirmed that he was not interested in any deal that “could result in the sale of his share in HBC.”

“Catalyst’s reckless financing plans would swiftly add the company to the long list of retailers that have been forced to close their doors, shed jobs and impact pensioners,” the company said in a statement. “Catalyst has a track record of failing to execute on its promises and of engaging in conduct that is viewed critically by many participants in the capital markets.”