Bidder for the Bay opens door to higher offer

Maple Leaf Heritage Investments says it may be willing to sweeten its takeover bid for Hudson’s Bay Co. if the Canadian retailer opens up its books.

“ If HBC can provide information that demonstrates additional value in HBC, Heritage would consider re- evaluating its offers, with the potential for a higher price,” Robert Johnston, vice-president of Maple Leaf Heritage, said in a statement yesterday. On Friday, Hudson’s Bay urged its shareholders to reject the $ 1 billion hostile bid, saying the offer “ does not reflect the underlying value of HBC’s business.”

Hudson’s Bay, Canada’s oldest corporation, said it has granted access to its corporate books to a number of other potential bidders, and discussions are in progress. Maple Leaf Heritage, headed by U. S. financier Jerry Zucker, has offered to buy Hudson’s Bay for $ 14.75 a share, a 17 per cent premium to the company’s closing share price on Oct. 27, the day before the bid was made public. Maple Leaf is already Hudson’s Bay’s largest shareholder, with an 18.8 per cent stake.

Hudson’s Bay officials could not be reached for comment. The firm’s shares fell 14 cents yesterday to close at $ 14.95 on the Toronto Stock Exchange.