Hudson’s Bay special committee “disappointed” with ISS recommendation

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FILE PHOTO: People walk into the Hudson’s Bay Company (HBC) flagship department store in Toronto January 27, 2014. REUTERS/Mark Blinch/File Photo

(Reuters) – Hudson’s Bay Co’s (HBC.TO) special committee said on Monday it was disappointed with proxy adviser Institutional Shareholder Services’ recommendation to vote against the takeover bid by a consortium led by the retailer’s chairman, Richard Baker.

“We are disappointed by the ISS recommendation and the errors and flawed rationale of ISS,” said David Leith, chair of the retailer’s special committee that negotiated the deal with Baker’s group.

ISS last week recommended shareholders to vote against the Baker-led consortium’s C$1.9 billion deal, which was topped by Toronto-based buyout firm Catalyst Capital Group Inc.

The special committee in November had rejected Catalyst’s offer saying it was not “superior”.

Hudson’s Bay shareholders are set to vote on the deal with Baker on Dec. 17. Baker’s consortium, which holds a 57% stake in the company, will be excluded from the vote.

Reporting by Soundarya J in Bengaluru; Editing by Maju Samuel

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