Hudson's Bay denies that it has reportedly agreed to sell half of its Europe operations

Hudson's Bay Co. the Canada-based retailer founded in 1670, said it has not entered an agreement to sell or combine its European business or properties. The announcement comes after The Wall Street Journal reported earlier this week, citing people familiar with the situation, that the company agreed to sell half of HBC Europe's operating company to Austria-based Signa Holding GMBH in a deal that would bring in more than $1 billion in cash. On Friday, Hudson's Bay said in a statement: "While HBC does not generally comment publicly on market speculation or rumors, in light of recent media reports, HBC believes it is prudent to advise stakeholders that it is in discussions with SIGNA Holding GmbH and has signed a non-binding letter of intent with respect to the exploration of a potential joint venture." The company said any potential transaction is subject to further review, and there can be no assurance that any discussions will lead to a deal. The Toronto-listed shares had rallied 6.4% year to date through Thursday, while the SPDR S&P Retail ETF had climbed 9.1% and the S&P 500 had gained 2.4%.