Hudson Bay, owner of Saks, up 17 percent on deal reports

Shares of Saks Fifth Avenue’s owner are soaring by more than 17 percent Tuesday on reports that the company is close to reaching a deal to go private.

The Toronto-based retailer, traded on the Toronto Stock Exchange, has been in a months-long battle with several investor groups over its plan to become a privately held company. But one of the agitators, Catalyst Capital Group, is in talks with the HBC’s executive chairman, Richard Baker, according to reports.

A deal that would allow the company to go private is expected to be reached this week, according to WWD, a fashion trade publication that first reported the talks.

Baker holds a majority stake — or 57 percent — in the department store company and offered in October $10.30 in Canadian dollars—or $7.94— to buy out existing shareholders.

Catalyst, which has a 17.5 percent stake in HBC, countered with an $11 Canadian dollars share bid or $8.47.

Baker’s group is reportedly considering raising its bid to $C11 a share.

HBC and Catalyst could not immediately be reached for comment.