
Hudson's Bay rejects Zucker takeover bid CBC \|\| November 26, 2005 Update - Jan 27 2006 - Hudson's Bay agrees to be acquired by U.S. investor Zucker [KDR: Related Articles: In the Last 20 Years 11,380 Canadian Companies Taken Over and U.S. investor bids for Hudson's Bay Co.] Hudson's Bay Co. has told shareholders to turn down a $1-billion takeover bid from South Carolina businessman Jerry Zucker. In a circular mailed to shareholders and debenture holders on Friday, the HBC (TSX:HBC) board of directors said Zucker's bid was too low. "HBC's board has carefully considered the recommendation by its special committee and advisors, and unanimously recommends that security holders reject the offers," said Yves Fortier, governor of the venerable retailer. Maple Leaf Heritage Investments Acquisition Corp., a Zucker subsidiary, unveiled a $14.75 per share cash bid for HBC on Oct. 28. Maple Leaf Heritage has lined up $1 billion in financing from two American banks. Article Posted at www.KnowledgeDrivenRevolution.com Zucker has been buying up shares of the Bay since mid-2003, amassing an 18.8 per cent stake in the company. Among its reasons for rejecting the bid, HBC said Zucker's offer doesn't match the takeover premiums paid in other recent acquisitions in the retail industry. HBC also said its financial advisers, BMO Nesbitt Burns and Goldman Sachs, have said the offer is "inadequate." The retailer also said Zucker's bid came before the effects of HBC's recent restructuring and job cuts could be realized. HBC said it expects to see $40 million to $45 million in annual pre-tax savings from its revamp. HBC said it has been talking to other parties about possible alternative deals. On Thursday, HBC reported a $50.3 million loss on weaker sales and a $28 million restructuring charge Established in 1670, Hudson's Bay Co. is Canada's oldest corporation. The firm has more than 500 stores, including The Bay and Zellers chains. About KDR \| \| Home \| \| Weekly Features Archive	Weekly Weekly Features Archive
In Depth The Number 1 Reason YOU became a Slave Coming Soon: 9-11 Liberals, Conservatives and NDP
Archive September 2005 October November 2005 30 31 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 01 02 03 Weekly Features

Hudson's Bay rejects Zucker takeover bid

CBC || November 26, 2005

Update - Jan 27 2006 - Hudson's Bay agrees to be acquired by U.S. investor Zucker

[KDR: Related Articles: In the Last 20 Years 11,380 Canadian Companies Taken Over and U.S. investor bids for Hudson's Bay Co.]

Hudson's Bay Co. has told shareholders to turn down a $1-billion takeover bid from South Carolina businessman Jerry Zucker.

In a circular mailed to shareholders and debenture holders on Friday, the HBC (TSX:HBC) board of directors said Zucker's bid was too low.

"HBC's board has carefully considered the recommendation by its special committee and advisors, and unanimously recommends that security holders reject the offers," said Yves Fortier, governor of the venerable retailer.

Maple Leaf Heritage Investments Acquisition Corp., a Zucker subsidiary, unveiled a $14.75 per share cash bid for HBC on Oct. 28. Maple Leaf Heritage has lined up $1 billion in financing from two American banks.

Article Posted at www.KnowledgeDrivenRevolution.com

Zucker has been buying up shares of the Bay since mid-2003, amassing an 18.8 per cent stake in the company.

Among its reasons for rejecting the bid, HBC said Zucker's offer doesn't match the takeover premiums paid in other recent acquisitions in the retail industry.

HBC also said its financial advisers, BMO Nesbitt Burns and Goldman Sachs, have said the offer is "inadequate."

The retailer also said Zucker's bid came before the effects of HBC's recent restructuring and job cuts could be realized. HBC said it expects to see $40 million to $45 million in annual pre-tax savings from its revamp.

HBC said it has been talking to other parties about possible alternative deals.

On Thursday, HBC reported a $50.3 million loss on weaker sales and a $28 million restructuring charge

Established in 1670, Hudson's Bay Co. is Canada's oldest corporation. The firm has more than 500 stores, including The Bay and Zellers chains.

About KDR | | Home | | Weekly Features Archive

Weekly

Weekly Features Archive

In Depth

The Number 1 Reason YOU became a Slave

Coming Soon:

9-11

Liberals, Conservatives and NDP