Catalyst Capital Group has made a rival bid to buy the owner of Saks Fifth Avenue, challenging an offer led by its chairman.
Private equity firm Catalyst has offered $11 per share in cash for Canadian department store group Hudson’s Bay Company, in an offer that values the company at C$2.03bn (£1.18bn).
Read more: Saks owner Hudson’s Bay agrees to go private
The offer from Catalyst, which owns 17.5 per cent of the company, beats the $10.30 per share bid made by Hudson’s Bay chairman Richard Baker and a consortium of investors.
The Baker-led group, which already owns 57 per cent of Hudson’s Bay and has previously indicated it would block a sale to another buyer, has described the Catalyst offer as “non-executable”.
Last month, Hudson’s Bay agreed to be bought by the group of investors, led by Baker, however the plan has faced some backlash from shareholders.
Catalyst has now filed a complaint with the Ontario Securities Commission, alleging the consortium’s deal could include potential securities law violations.
The private equity firm has indicated that it would consider raising its offer and could work with other investors interested in co-sponsoring the bid.
Hedge fund Land’s & Buildings has said it would be interested in teaming up with Catalyst to help fund the deal.
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