* IPO to raise C$365 million, down from C$400 million
* HBC operates Lord & Taylor, Hudson’s Bay
TORONTO, Nov 19 (Reuters) - 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.