The Hudson’s Bay Company, a Canadian department store chain, is likely to be a prime candidate for the Coles bidding war at budget department stores, sources familiar with the matter told the post.
Coles received “multiple” statements of interest to buy the chain, the company said Monday.
A Wisconsin-based retailer said the proposal submitted on March 16 was “non-binding” and did not include a funding promise.
Toronto-based HBC, which owns Saks Fifth Avenue and the Hudson’s Bay Company, may bring Coles to Canada. Other stakeholders are reportedly private equity firms Sycamore Partners and Leonard Green Partners.
All three refused to comment on the post about their interest in Coles.
After Coles appeared and activist investors Macelm and Engine Capital urged the company to put it up for sale and renew its board of directors, they hired Goldman Sachs to lead the potential sales process.
The Canada-based Hudson Bay Department Store is one of Coles’ bidders.Reuters
Coles rejected two takeover offers, including one from Sycamore, earlier this year and implemented a so-called “poison pill” to fend off hostile takeovers.
In a letter to shareholders on Monday, Coles said of the bid and Maselm’s efforts to take over the board: “To maximize shareholder value, the Board is considering alternatives through deliberate and ongoing dialogue with potential bidders. This process is robust and compelling standalone. Measured against the potential of Run’s value creation. Regardless of the outcome of this process, we are excited about many future opportunities for Coles. “
The company is likely to make a decision on its current offer at its annual meeting on May 11, a source familiar with the process told The Post.
Coles’ share price fell less than 1% to $ 62 on Monday.