Hudson's Bay Co. HBAYF

RE:BNN interview - November 16th

[seatleslim]

That guy come across has extremely sharp and intelligent, though it would be nice to have a article that focuses on and spells out the dilution.  HBC has provided no information on what they are receiving in return for issuing new preference shares with unique protections, and all the benefits of the common stock at nearly one third of a real estate NAV estimate that the company published only a few months ago.

Note that the NAV only included the real estate underlying HBC's many business, to which nothing was attributed. It would be one thing if there were some sort of liquidity emergencey, which there clearly is not.  All they are recieving is a "strategic alliance" and some sort of agreement to lease some space -- the terms of which (if there are any) are undisclosed.

I do hope that the Ontario Teachers, one of the "sophisticated investors" sponsoring this are targeted for their position on this and their obvious attack on minority shareholders.  These people are on the public payroll in Ontario, recieve directors fees, and very likely do not personally own a single share of HBC.

That is the case against the HBC board.  Of course they can sell real estate, etc, etc, but anyone can argue about what to sell, how fast to sell, what to do with the proceeds, etc. In otherowrds an unwinnable arguement.  

The sale of preferred stock to WeWorks is a disgrace for which anyone involved needs to be publically called out.