Hudson's Bay set to reject Signa's bid for Kaufhof, say sources

Hudson’s Bay Co plans to reject Austrian property and retail group Signa Holding GmbH’s 3 billion euro bid ($3.7 billion) for Kaufhof, Germany’s largest retail chain, people familiar with the matter said on Wednesday.

Hudson’s Bay, which also owns the Saks Fifth Avenue luxury department store chain, had said in November it would review Signa’s offer for Kaufhof, but also called it incomplete, non-binding and unsolicited, with no evidence of financing.

The sources asked not to be identified because the deliberations are confidential.

“Consistent with its fiduciary responsibility, the (Hudson’s Bay) board is reviewing the offer,” a Hudson’s Bay spokesman said on Wednesday.

A Signa spokesman had no immediate comment.