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Catalyst boosts stake in Hudson's Bay to thwart go-private offer

Canadian private equity firm Catalyst Capital Group raised its stake in Hudson's Bay Co. to approximately 15.99%, boosting its power to block the proposed privatization offer of an investor group, according to a Sept. 10 ownership filing.

Financial terms of the transaction were not disclosed.

The firm initially proposed to acquire about 10.75% of the Ontario-based department store chain for C$10.11 per share in a bid to bar a going-private offer by a Hudson's Bay investor group, which included Governor and Executive Chairman Richard Baker.

As of Aug. 31, Catalyst holds 29,431,738 common shares in Hudson's Bay, or nearly 16% of the company.

In the latest filing, Catalyst reiterated its opposition to the investor group's proposal, saying it is "committed to working with the special committee and the board of directors of [Hudson's Bay] to seek out every alternative that can maximize value for all shareholders, whether through a sale process, dividend distributions of the cash to be realized from the sale of the [company's] key European assets or otherwise."

Hudson's Bay's stock closed up 1.32% to C$9.95 following the disclosure.