HBC reaches agreement with activist investor on Rhône deal: Reuters
Canadian luxury retailer Hudson’s Bay Co (HBC) said this week it reached an agreement with shareholder Land & Buildings, under which the U.S. activist hedge fund investor would withdraw its appeal against the conditional approval given for an investment by Rhône Capital, Reuters reported. HBC in October received a US$500 million ($632 million) investment from U.S. private equity firm Rhône in the form of eight-year mandatory convertible preferred shares. Land & Buildings head Jonathan Litt said the investment was not in the best interests of minority shareholders. As a concession to Litt, the Toronto-based HBC said that if it issues new shares in a way that triggers a price protection feature available to Rhône for a year as part of the deal, it would do the issuance as a rights offering available to all its investors on a pro rata basis.
