Hudson's Bay Co.  (HBC)  is feeling the heat.

The Canadian retailer and owner of Saks Fifth Avenue buckled to the pressure of activist investor Jonathan Litt and will be reviewing privatization options and potential sales of real estate.

Litt, through his hedge fund Land and Buildings, threatened in June a proxy fight if management didn't consider ways to raise the value of Hudson's Bay's plummeting shares.

Hudson's Bay's executive chairman, Richard Baker, already has tapped an investment bank to defend itself against Litt's campaign and will hire another financial adviser for the review, Reuters reported on Friday, Aug. 25, citing unnamed sources. Hudson's Bay declined to comment.

Immediately following the news break, Hudson's Bay shares jumped 14%. The retailer has more than $10 billion in real estate assets -- holdings that make Hudson's a "real estate company, full stop," Litt wrote in a letter to its board in June.

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