HBC entered into an agreement last month with a group of shareholders to take the company private

HBC entered into an agreement last month with a group of shareholders to take the company private

Canadian retailer Hudson's Bay Company (HBC) has received a third – and higher – offer from Catalyst Capital Group to acquire the company.

HBC received the unsolicited proposal yesterday (27 November), with Catalyst Capital offering CAD$11.00 (US$8.27) per share in cash.

This is the third offer from the private equity firm, which originally proposed to purchase up to 14.8m common shares for CAD10.11 each before upping this offer in August to 19.8m shares at the same price.

"The Special Committee of the HBC board of directors will review the offer in consultation with its independent financial and legal advisors to determine the course of action that is in the best interests of HBC and the minority shareholders," HBC says.

HBC entered into a definitive agreement last month with a group of its shareholders to take the company private at a price of CAD10.30 per share in cash.

The move ended months of speculation since the group first proposed a deal to take HBC private in June at a price of CAD9.45 per share.

The initial offer was criticised by some of HBC's investors, with Land & Buildings Investment Management slamming the proposal as "woefully inadequate" and Paradise Developments, which holds a 0.6% stake in the business, urging the board to reject the offer or negotiate a better price.

HBC's businesses span North America and include Saks Fifth Avenue, Hudson's Bay, and Saks Off 5th. The retailer inked a deal to sell its Lord & Taylor banner for US$100m to fashion rental subscription service start-up Le Tote in August.