Hudson's Bay Co. Chairman Richard Baker may scrap an offer to take the struggling retailer private after regulators delayed a vote on the deal following complaints from a minority shareholder.
The investor group that controls the owner of Saks Fifth Avenue is "evaluating next steps, including terminating the transaction," according to a memo sent to advisers. The group plans to make a final decision in a week or so, according to the note. Until then, it's "pens down" until further notice, meaning no work is to be done on the deal.
The Baker group cited third-quarter results and a delay in the shareholder vote ordered by the Ontario Securities Commission late Friday. The Canadian regulator endorsed a complaint by minority shareholder Catalyst Capital Group Inc., which had sought a delay and increased disclosure on the Baker bid. The vote had been scheduled for Dec. 17 on the 10.30 Canadian dollars a share offer that valued the Toronto-based company at C$1.9 billion ($1.4 billion).