Saks Fifth Avenue owner in limbo after ISS recommendation
Institutional Shareholder Services recommended that Hudson's Bay Co. shareholders vote against a C$1.9 billion, or C$10.30 per share, takeover offer led by company chairman Richard Baker.
Why it matters: Hudson's Bay was already drowning in limbo, and this might pull away its life preservers. ISS argues that there's no legitimate reason for shareholders to accept Baker's bid, which also includes Rhone Capital and WeWork Industrial Trust, over an C$11 per share offer from Catalyst Capital Group.
- But Catalyst can't proceed without Baker's blessing, and the ISS recommendation likely means Baker will also fall short.
- Hudson's Bay brands include Saks Fifth Avenue and Lord & Taylor.
The bottom line: "Hudson’s Bay shares closed at C$9.13 on Friday, in a sign that investors do not expect either bid to succeed." — Bhargav Acharya, Reuters