* IPO to raise C$365 million, down from C$400 million
* HBC operates Lord & Taylor, Hudson's Bay
TORONTO Nov 19 Department store operator
Hudson's Bay Company has cut the size of its proposed initial
public offering and lowered its targeted share price range,
according to a source familiar with the deal.
The firm, which owns two venerable chains, Lord & Taylor in
the United States and Hudson's Bay in Canada, is aiming to raise
C$365 million ($364 million), down from a prior target of C$400
million, the source said. It has trimmed its share price target
to C$17 to C$18 as share, from C$18.50 and C$21.50.
As HBC prepares for its offering in Toronto, it is touting a
"transformation" underway at both department stores, which have
posted strong gains in same-store sales. But both chains also
face increasing competition, a likely medium- and long-run
negative for the stock.
In the United States, Lord & Taylor competes with a
resurgent Macy's Inc, and in Canada, HBC faces competition
from Target Corp and other U.S. entrants.
Founded in 1670, Hudson's Bay was a fur trading business
long before it operated department stores, running trading posts
across what is now Canada. It went private in 2006, as shoppers
fled to specialty retailers and U.S.-based heavyweights like
Wal-Mart Stores Inc.
NRDC Equity Partners, controlled by U.S. real estate
investor Richard Baker and his family, bought out HBC's other
investors in 2008, and integrated it with Lord & Taylor, which
operates 48 stores across the United States.
HBC declined to comment.