TORONTO - The executive chairman of Hudson's Bay Co. has effectively terminated his indirect purchase of about 10 per cent of the retailer's shares from Ontario Teachers' Pension Plan.

The pension fund manager agreed in January to sell nearly 18 million shares for $9.45 each to an entity controlled by Richard Baker, who is a large HBC shareholder as well as executive chairman.

Baker's Rupert of the Rhine LLC says it and Ontario Teachers' have agreed to end the proposed sale -- which was a benchmark for a going-private offer of $9.45 per share from Baker and other HBC shareholders.

The announcement came shortly after a long-time critic of HBC's performance under Baker's leadership called the privatization offer announced last week "woefully inadequate" for minority shareholders.

Land and Buildings Investment Management is calling on the HBC committee of independent directors to explore other potential transactions.

A letter from Land and Buildings founder Jonathan Litt asks for the committee to have the value of HBC's real estate and retail banners evaluated by a independent investment bank without relationships with the buyout group.