Shares of Hudson's Bay (HBAYF) surged 15% to $10.28 in late morning trading on news Land & Buildings Investment Management took a 4.3% stake in the retailer.
The activist investor is considering strategies including taking the retailer private or redeveloping its vast real estate holdings, the Wall Street Journal reported.
Land & Buildings will deliver the Hudson's Bay board a letter today in which it has reportedly written that the company's real estate is worth four times its stock price. The activist investor has suggested selling some of the retailer's prime real estate to be developed into hotels or office buildings.
Insiders own about 20% of the company, making any battle Land & Buildings wants to wage an uphill one.
Hudson's Bay, which owns Saks Fifth Avenue and Lord & Taylor, has unsuccessfully explored the purchase of Macy's (M) - Get Report and Nieman Marcus this year. The company announced this month plans to cut 2,000 jobs in North America.
Hudson's Bay stock jumped 15% in mid-morning trading.
What's Hot On the TheStreet
All eyes on Apple this week: Apple's (AAPL) - Get Report stock will be on the minds of Wall Street bit more than the norm this week. Shares of the tech giant have fallen 6.9% since the Nasdaq's peak on June 8 amid a broader selloff in tech. Not helping near-term sentiment on the company are two rare analyst downgrades that have questioned how big a seller the iPhone 8 will be.
But investors shouldn't be ready to throw in the towel on Apple by any stretch of the imagination.
"When you have these sellers come in, all you have to do is wait them out -- and one of the things I learned as a hedge fund manager is that patience is a true virtue," TheStreet's founder Jim Cramer, who also manages the Action Alerts PLUS charitable trust portfolio, said on Apple's recent slide.
After the deal was announced on Friday, U.S. Rep. Ro Khanna (D-Calif.) urged the U.S. Department of Justice to conduct a review on the merger's legality and possible harm to the economy.
"I am concerned about what this deal means for suppliers and neighborhood grocery stores," Khanna said in a statement. "The Justice Department and FTC must undertake a review that considers not just the merger's impact on prices, but also the impact on jobs and wages. We need to reorient antitrust policy to factor in the harm that economic concentration causes for American workers."
Meanwhile, Whole Foods shares are trading above Amazon's offer price as to suggest a bidding war may ensue.