TORONTO - Hudson's Bay Co. (HBC.TO) says European retailer Signa Holding has withdrawn its offer for the company's German operations following a unanimous decision by the Canadian retailer's board of directors to reject the bid.

HBC says Signa's proposal was not in the best interest of its shareholders and significantly undervalued the overseas business.

The retailer announced last November that it had received the unsolicited offer from Signa for its German department store chain Kaufhof and other real estate assets.

HBC acquired Kaufhof in 2015 as part of a $3.2-billion deal that included Belgium retailer Galeria Inno.

Activist investor Land & Buildings Investment Management LLC had urged HBC to "seriously consider" the Signa bid, which it valued at $4.49 billion.

HBC's management had been under pressure for months last fall from Land & Buildings, which had argued the retailer's shares were undervalued.