Hudson's Bay Co. HBAYF

Obvious response from Signa

[seatleslim]

Would be to bid for the whole company, which would be largely self financed in the low twenties.  Their bid for Kaufhof easily imputes that sort of price for the company. Simon would happily take what’s left of the HBS Jv for the price they’ve already paid for their remaining stake.  It would be hard for the BOD to turn that down considering they have shown their cards; ie, they are willing to sell a third of the company for a third of NAV.

[MrPumpandDump1]

I didn't full understand what some here were saying about hbc selling for a third of NAV until HBC spelled it out in its response. They seem bent on making their SH sell

[CaptainConn]

Wishful thinking but never going to happen. This management is hell bent on keeping share price in the gutter. I will take my profit on the next speculative pop.

[seatleslim]

You could be right, but I think they played their cards to early.  Further the so-called majority “approval” for the transaction is only conditional and the independent shareholders would have govern that indication without knowledge of the Kaufhof bid. That is why they issued panicky release today. Ontario Teachers as an example will vote in their own interest in the end. 

[Centurion100]

In short the BOD have made a real pigs ear of this.  It will be interesting to see if some of the larger shareholders lean on them to rip up the WeWork deal and sell Kaufhof instead.

[MrPumpandDump1]

that's what they should do. I still can't understand the We work deal. WTF was That?

[Centurion100]

The BoD have paid a heck of a price to be able to rent out some of their space to millennials in the hope they are going to suddenly be converted to a dept store format simply by walking through the building to get to their desk. I really think the board needs to do a better job of putting some detail out  on the financial benefit of the transaction in relation to giving away a third of $35

[frankstevens17]

When investors quit dreaming about the "pie in the sky" $35 a share price tag and think $20 the sooner their dreams will be fulfilled.

[Centurion100]

You will recall that it was actually the management who provided the $35 number.  Did they believe it then and do they still believe it? If yes then why sell a third of the company at a third of the price? Management credibility is seriously on the line here.

[frankstevens17]

$35 is a best case scenario and doesn't account for the fact the stock price will always trade at a discount to that number.

[seatleslim]

Yes it was managements estimate and it was based SOLELY on real estate.  In turn there were four categories of real estate: Saks flagship, L&T flagsip (both wholly owned), the RioCan JV, and the Simon JV. The prices used in the jv’s were Simply the prorated prices paid by the  JV partners a couple of years ago.   Remember that the Saks locations are typically in “A” malls and

[frankstevens17]

Seatleslim that's a good comment, particularly the last sentence.