A Hudson’s Bay Co. store sign is shown at its Toronto flagship store on July 29, 2013. THE CANADIAN PRESS/Nathan Denette

HBC stock resumes trading after halt, shares surge more than 22%

HBC postponed on Dec. 16 a shareholder vote on a Baker’s takeover offer for $10.30 per share

Shares of Hudson’s Bay Co. were briefly halted Tuesday morning on the Toronto Stock Exchange after volatile trading activity triggered a regulatory safety mechanism.

The trading halt was issued at 9:52 a.m. ET as a result of a single-stock circuit breaker, which is enacted in order to ensure fairness in the market, according to the Investment Industry Regulatory Organization of Canada.

HBC shares opened at $8.38 and quickly shot to $10.09, a gain of more than 22 per cent, before falling back to $9.40.

The company’s shares resumed trading at 9:57 a.m., and were at $9.52 in midmorning trading.

HBC is in the midst of a months-long proxy battle between a group led by executive chairman Richard Baker and a dissident shareholder group that opposes Baker’s plan to take the company private.

Catalyst Capital Group, a minority shareholder that controls about 17.5 per cent of HBC’s common shares, recently initiated an OSC hearing seeking to block the Baker-led bid, or require the retailer to amend its circular. Catalyst alleged HBC made several misrepresentations in the paperwork.

HBC postponed on Dec. 16 a shareholder vote on a Baker’s takeover offer for $10.30 per share after the Ontario Securities Commission ruled HBC must amend the circular, while Catalyst threatened to “take additional steps” if the retailer failed to reconsider its offer of $11 per share.

The company has been recommending shareholders approve the transaction.

ALSO READ: Hudson’s Bay announces 2,000 layoffs

The Canadian Press


Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Alberta’s new sport fishing regulations include more harvesting opportunities

The 2020 regulations feature more opportunities for recreational fishing and online licences

Sylvan Lake photographer captures family life from the front steps

Deb McNeil is taking porch portraits to share the uniqueness of families during COVID-19

TC Energy enlists Alberta to help finish US$8-billion Keystone XL project

Alberta government has agreed toinvest about US$1.1 billion (C$1.5 billion) as equity in the project

A message from the publisher

Consider a voluntary subscription to Sylvan Lake News

Police in Saskatchewan charge man with killing his parents and son

Police in Saskatchewan charge man with killing his parents and son

PM, Scheer among MPs to donate pay hike to charities during COVID-19 crisis

PM, Scheer among MPs to donate pay hike to charities during COVID-19 crisis

Feds likely didn’t have enough protective gear in emergency stockpile: Hajdu

Feds likely didn’t have enough protective gear in emergency stockpile: Hajdu

Supply-line disruptions could cause Canadian drug shortage

Supply-line disruptions could cause Canadian drug shortage

Duration of COVID-19 measures depends on obeying health authorities: PM

Duration of COVID-19 measures depends on obeying health authorities: PM

Parliament to sit again to approve more COVID-19 relief as spending climbs

Parliament to sit again to approve more COVID-19 relief as spending climbs

Trudeau: U.S. standing down plan to send soldiers to backstop northern border

Trudeau: U.S. standing down plan to send soldiers to backstop northern border

U.S. Coast Guard rules cruise ships must stay at sea with sick onboard

U.S. Coast Guard rules cruise ships must stay at sea with sick onboard

Most Read