DUESSELDORF, June 26 (Reuters) - Hudson’s Bay Chief Executive Helena Foulkes is expected to discuss a joint venture between Germany’s Kaufhof and Austrian property group Signa Holding during a trip to Europe this week, people familiar with the matter said on Tuesday.
Reuters reported on Monday that Canada-based Hudson’s Bay, having rejected a 3-billion-euro bid from Sigma for Kaufhof earlier this year, is now discussing a joint venture for its German retail business Kaufhof.
Under the joint venture structure being considered, Signa’s department store operator Karstadt would acquire half of Kaufhof’s property company and 51 percent of its operating company. It would have the option to buy the rest at a later date, the sources told Reuters.
While the trip was originally supposed to focus on topics such as cost cutting at Kaufhof, top European managers have asked for answers about the planned joint venture, the sources said. A representative for Hudson’s Bay Europe declined to comment. (Reporting by Matthias Inverardi; writing by Arno Schuetze; editing by Jason Neely)