Hudson’s Bay Company (TSE: HBC) Reportedly Reviewing Strategic Options

Executive Summary

• Hudson’s Bay Company (TSE: HBC) is reportedly reviewing its options, including going private, under pressure from an activist shareholder, according to a story published by Reuters citing “people familiar with the matter.”
• Actions under review include going private as well as potential sales of retail assets and real estate, although it is not guaranteed that a transaction will emerge from the review.
• The company was already working with an investment bank to defend itself against an activist investor, and it is reportedly seeking another financial advisor to carry out the review, according to the Reuters article.
• An investor, Land and Buildings, has urged the company to consider going private and to monetize its real estate holdings. Recently, Land and Buildings increased the pressure, seeking to nominate directors unless the company takes steps to increase its stock price.