OTCPK:HBAYF - Post by User
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oceanelevenon Nov 26, 2019 8:24am
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RE:Something on HBC
RE:Something on HBC
Globe says HBC's sinking shares bode ill for Baker bid
2019-11-26 07:36 ET - In the News
The Globe and Mail reports in its Tuesday, Nov. 26, edition that on Monday Hudson's Bay Co. gave back 20 cents to close at $8.02, or $1.28 below executive chairman Richard Baker's $1.1-billion privatization bid. The Globe's Jeffrey Jones and Rachelle Younglai write that Mr. Baker and his allies warn the bid is their best and last offer. If rejected, investors will be exposed to the risks that the stock will plummet, the group said in a statement. The bid must win the approval of most minority shareholders. The vocal ones, such as Catalyst Capital Group and Sandpiper Group, have said they oppose it. Shareholders are slated vote on the deal on Dec. 17. HBC's board has recommended that minority shareholders accept Mr. Baker's bid. Mr. Baker has locked up support from shareholders that control 57 per cent of HBC's shares. InterStratics Consultants founder Alex Arifuzzaman reckons the privatization will succeed but pointed out the risk: "There is a material chance it won't. That is why the stock price is lower." Minority shareholders have complained that the sweetened offer does not reflect the value of HBC's real estate in prime locales such as midtown Manhattan and downtown Vancouver.
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