Hudson's Bay Co. T.HBC

Todays news from Thomson Reuters

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TORONTO, Oct 23 (Reuters) - Activist investor Jonathan Litt ratcheted up pressure on Hudson's Bay Co on Monday, calling a special shareholder meeting potentially to remove directors, in a sign of escalating tension between two investors who hold different views about the future of the department store operator. HBC Executive Chairman Richard Baker sees Hudson's Bay as a retail company with real estate assets, while Litt wants HBC to transform itself into a real estate play and pull away from the retail space. The exit of HBC CEO Gerald Storch on Friday has given Litt an opening to intensify his attack on a company that has struggled to turn sales around.. Litt's push for a special meeting sets the stage for a potential high-profile proxy battle in Canada, where activists have had mixed results compared with campaigns in the United States. "We are evaluating a number of proposals on which we believe the voices of shareholders should be heard including the removal of directors from the board and will announce the full slate of proposals and next steps in the special meeting process shortly," Litt, founder of hedge fund Land & Buildings Investment Management, said in a statement. Land & Buildings holds about 5 percent of the shares of HBC, which owns the Saks Fifth Avenue and Lord & Taylor retail chains. The hedge fund has been pushing the Canadian retailer to take action to extract value from its substantial real estate holdings and consider other options, including the sale of Saks Fifth Avenue, to boost its share price. Storch's exit underscored the board's attempt to "buy time and placate investors to address underperformance and undervaluation," Litt added.