
Hudson's Bay agrees to be acquired by U.S. investor Zucker CBC \|\| January 27, 2006 Related - In the Last 20 Years 11,380 Canadian Companies Taken Over Hudson's Bay Co., the oldest company in Canada, has agreed to be acquired by South Carolina billionaire businessman Jerry Zucker in a deal worth more than $1 billion. Zucker's company, Maple Leaf Heritage Investments, increased its offer for shares of HBC by 50 cents a share to $15.25 a share. HBC shares closed Thursday at $15.03 on the TSX, up $1.10. HBC's board, which said it had considered "several offers" for the company, has endorsed Zucker's all-cash bid and is recommending that shareholders tender their shares to the offer. Zucker offer is 'fair value': HBC "We are satisfied that the amended offer constitutes full and fair value for the company," HBC governor Yves Fortier said in a release. The retail icon said the revised offer also contains conditions that have been "significantly reduced." Zucker had been buying up shares of Hudson's Bay Co. since mid-2003 and now has about 19 per cent of the company. Article Posted at www.KnowledgeDrivenRevolution.com Last October, he issued a formal offer for the rest that he didn't own. That offer was worth $14.75 a share. But in November, the chain's board rejected that offer as too low and said it was talking to other parties about possible deals. There were reports that New York-based buyout firm Cerberus Capital Management and Canadian conglomerate Onex Corp. had been kicking the Bay's tires and made informal offers for the chain. But in the end, it was the Zucker deal that rose to the top. What's next for HBC? "We are committed to enhancing our customers' shopping experience through a substantially greater focus on service and revitalizing the spirit of the organization," Zucker said in a statement. "Through the implementation of more efficient methods, we will positively differentiate HBC from its competitors." Zucker spokesman Robert Johnston said Zucker is committed to growing the company. "We don't have major plans for cutting the number of stores," he told CBC News Business. "I don't think there are any major plans for job cuts.." Johnston said Zucker is sensitive to the unique role Hudson's Bay Co. has played in Canada. "I really hope there is no national backlash on this," he said. "I hope people can see through any nationalist points and focus on what we are doing for the company and all the customers that patronize the company." Retail analyst Richard Talbot, of Talbot Consultants, told CBC News Business that Zucker "probably didn't want to buy it." He thinks Zucker was looking for a white knight to pick up his one-fifth stake but "there wasn't one." "He's going to have to hire good managers...or break it up," Talbot predicted. HBC has been struggling HBC lost more than $50 million in the most recent quarter and its sales have continued to fall as shoppers flock to cheaper big box alternatives like Wal-Mart. Zucker's revised offer is conditional on getting two-thirds of HBC's shareholders to tender their shares – down from the 90 per cent approval Zucker's first offer required. Investment Canada's approval is also necessary. Hudson's Bay, founded in 1670, is Canada's largest department store chain with 550 stores, including the Bay, Zellers, and Home Outfitters. It has 70,000 employees. About KDR \| \| Home \| \| Weekly Features Archive	Weekly Weekly Features Archive
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Hudson's Bay agrees to be acquired by U.S. investor Zucker

CBC || January 27, 2006

Related - In the Last 20 Years 11,380 Canadian Companies Taken Over

Hudson's Bay Co., the oldest company in Canada, has agreed to be acquired by South Carolina billionaire businessman Jerry Zucker in a deal worth more than $1 billion.

Zucker's company, Maple Leaf Heritage Investments, increased its offer for shares of HBC by 50 cents a share to $15.25 a share.

HBC shares closed Thursday at $15.03 on the TSX, up $1.10.

HBC's board, which said it had considered "several offers" for the company, has endorsed Zucker's all-cash bid and is recommending that shareholders tender their shares to the offer.

Zucker offer is 'fair value': HBC

"We are satisfied that the amended offer constitutes full and fair value for the company," HBC governor Yves Fortier said in a release.

The retail icon said the revised offer also contains conditions that have been "significantly reduced."

Zucker had been buying up shares of Hudson's Bay Co. since mid-2003 and now has about 19 per cent of the company.

Article Posted at www.KnowledgeDrivenRevolution.com

Last October, he issued a formal offer for the rest that he didn't own. That offer was worth $14.75 a share. But in November, the chain's board rejected that offer as too low and said it was talking to other parties about possible deals.

There were reports that New York-based buyout firm Cerberus Capital Management and Canadian conglomerate Onex Corp. had been kicking the Bay's tires and made informal offers for the chain.

But in the end, it was the Zucker deal that rose to the top.

What's next for HBC?

"We are committed to enhancing our customers' shopping experience through a substantially greater focus on service and revitalizing the spirit of the organization," Zucker said in a statement.

"Through the implementation of more efficient methods, we will positively differentiate HBC from its competitors."

Zucker spokesman Robert Johnston said Zucker is committed to growing the company.

"We don't have major plans for cutting the number of stores," he told CBC News Business. "I don't think there are any major plans for job cuts.."

Johnston said Zucker is sensitive to the unique role Hudson's Bay Co. has played in Canada. "I really hope there is no national backlash on this," he said. "I hope people can see through any nationalist points and focus on what we are doing for the company and all the customers that patronize the company."

Retail analyst Richard Talbot, of Talbot Consultants, told CBC News Business that Zucker "probably didn't want to buy it." He thinks Zucker was looking for a white knight to pick up his one-fifth stake but "there wasn't one."

"He's going to have to hire good managers...or break it up," Talbot predicted.

HBC has been struggling

HBC lost more than $50 million in the most recent quarter and its sales have continued to fall as shoppers flock to cheaper big box alternatives like Wal-Mart.

Zucker's revised offer is conditional on getting two-thirds of HBC's shareholders to tender their shares – down from the 90 per cent approval Zucker's first offer required. Investment Canada's approval is also necessary.

Hudson's Bay, founded in 1670, is Canada's largest department store chain with 550 stores, including the Bay, Zellers, and Home Outfitters. It has 70,000 employees.

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