TORONTO — Proxy advisory service Glass Lewis is recommending that Hudson's Bay Co. shareholders accept a takeover offer by a group led by the retailer's executive chairman.

The firm says the proposal offers shareholders certainty of value for their HBC shares at a sizable market premium and a relatively attractive valuation.

The recommendation stands in contrast to one by Institutional Shareholder Services Inc., another advisory service that has recommended shareholders reject the offer by the group led by Richard Baker.

The Baker-led group has offered $10.30 per share, a bid that is less than the $11 per share offered by dissident shareholder Catalyst Capital Group.

However a special committee of the HBC board formed to review the proposals has rejected the Catalyst offer because the Baker-led group, which holds a controlling stake in the retailer, has said it has no interest in selling.

Glass Lewis says it sees no viable path for the Catalyst offer to win shareholder approval.

This report by The Canadian Press was first published Dec. 11, 2019.

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