November 15, 2017 / 11:19 PM / 2 years ago

UPDATE 1-Hudson's Bay says no merit in appeal against Rhone investment

(Adds details on Rhone Capital investment)

Nov 15 (Reuters) - Canadian department store operator Hudson’s Bay Co said it saw no merit in activist fund Land and Buildings’ recent appeal against the Toronto Stock Exchange’s conditional approval for a $500 million investment from Rhone Capital.

Hudson’s Bay said on Wednesday it had written consent for the equity investment from shareholders representing well over 50 percent of its outstanding common shares.

Land and Buildings had filed the appeal with the Ontario Securities Commission, Hudson’s Bay said.

Earlier this month, Land and Buildings, headed by activist investor Jonathan Litt, had urged the company to call for a non-insider vote on Rhone Capital’s investment, saying the ones who voted had a “special interest” in the deal.

Last month Hudson’s Bay said Rhone Capital would invest the $500 million in the form of eight-year mandatory convertible preferred shares.

Land and Buildings, which had a near 5 percent stake in Hudson’s Bay as of July, did not immediately respond to a request for comment. (Reporting by Karan Nagarkatti in Bengaluru; Editing by Shounak Dasgupta)

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