Hudson's Bay Co. HBAYF

RE:Ortelius launches lawsuit against baker gang

[oceaneleven]

The Globe and Mail reports in its Saturday edition that small New York investment firm Ortelius Advisors has filed a lawsuit in Ontario Superior Court against Hudson's Bay Co. and its executive chairman, Richard Baker, over Mr. Baker's attempt to take the retailer private. The Globe's David Milstead and Jeffrey Jones write that it seeks an injunction blocking Mr. Baker's group from acquiring stock in the deal, which is slated to go to a shareholders vote on Dec. 17. Its lawsuit runs parallel to a hearing scheduled Wednesday before the Ontario Securities Commission, where Catalyst Capital Group is also challenging the transaction. In the Dec. 17 contest, Mr. Baker's group must win a majority of the votes cast among minority shareholders. Catalyst owns about 33 per cent of the 100 million minority shares. Ortelius says it owns 876,450 shares of HBC, or about 0.5 per cent, acquired since 2017. Ortelius says it looks for companies where the "sum-of-the-parts is worth significantly more than the current market price." Ortelius says it invested based on Mr. Baker's representations that HBC's real estate was worth more than its stock price. Now, however, Ortelius says, HBC is understating the true value.