Hudson's Bay Buyout Plan Hits Another Snag

Last month, Richard Baker -- the chairman of Hudson's Bay (NASDAQOTH: HBAYF) -- teamed up with several other big shareholders and offered to buy the company at a 48% premium to its pre-announcement share price.

At first glance, this might seem like a deal too good to pass up. However, less than a year ago, Hudson's Bay CEO Helena Foulkes declared that the retail conglomerate's real estate was worth about three times the offer price of 9.45 Canadian dollars ($7.19) per share. Furthermore, while the company has been losing money, it is in the midst of a major restructuring that could lead to much better results within a year or two.

Hudson's Bay is exiting or shrinking underperforming businesses like Lord & Taylor. Image source: Author.

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