Hudson's Bay Co. HBAYF

Reuters BS spreads like wildfire.

[talladega73]

Hudsons Bay to sell half its European business to Signa - report Prachi Singh | Thursday, 05 July 2018 Hudsons Bay Company (HBC) and Austrias Signa Holding have signed a deal that would see HBC selling around half of its European business to Signa. The development would bring two major German department store chains Kaufhof and Karstadt together, reports Reuters quoting German magazine WirtschaftsWoche. A proposed merger of equals for the European department store business was signed by both parties on July 3, the weekly reported. Reuters further added quoting the magazine that the deal would culminate into formation of a joint venture between Kaufhof, the German department store chain owned by Canada-based Hudsons Bay, and Karstadt, which is owned by Signa. Signa will hold over half of the stake in the JV and will manage the operating business, it added. In a separate article on the merger deal between HBC and Signa, the Wall Street Journal said Hudsons Bay would receive 1.1 billion euros (1.3 billion dollars) from Signa as part of the transaction, while Signa will assume 750 million in debt. HBC had earlier rejected Signas 3 billion euros (3.7 billion dollars) bid for Kaufhof earlier this year, finding it to be too low.

[las5513]

Based on the opening bids it would appears this Signa story is a non-event.

[las5513]

Since the high for today has only been$12.05 it appears no one believes the Signa story either that or they just don't care. Personally I could fall into either camp.

[bluejay100]

The longer it takes for either company to confirm the deal, the more it look like it's a dud.  Would surprise me if there was smoke without fire though.  The new CEO did say everything was on the table, and the structure of this deal has Baker's fingerprints all over it.  Plus, we know that the other party is absolutely desperate to get its hands on this real estate and has

[las5513]

I agree with your assessment but the new CEO or any CEO for HBC has no power since Richard Baker runs the show and the CEO's job is merely to agree with him.

[bluejay100]

You're absolutely right! In fact I don't know why they bothered hiring such a high-profile candidate.  Still, a JV deal is the way Baker likes to go, it seems.  I still think this deal is going to come to pass.  It better had, as I am still under water a few $ per share at present and there is no way I am going to recoup that through HBC running a bunch of struggling stores!

[las5513]

Although I'm not offside at $12 per share I would sure as hell like to see a price at least $15 - $20 or more.