Lew rejects request for share-buying halt

RETAIL billionaire Solomon Lew has rejected a plea by Myer that he stop buying more shares in the department store chain unless he lobs a takeover offer.

Mr Lew has also refused to comment on Myer’s request that its board remain majority independent led by an independent chairman, signalling his attempts to get one director seat at Myer could soon be followed by more as he leverages Premier Investments’ stake in the chain. Mr Lew is chairman and major shareholder of Premier Investments, which has an almost 23 per cent stake in Myer.

As the trench warfare between Myer and Mr Lew continues in the lead-up to the retailer’s annual meeting on November 10, the Myer board also declined to make a recommendation to its shareholders on the election of Terence McCartney, Mr Lew’s hand-picked candidate for the Myer board.

Mr McCartney is a former Myer Grace Bros boss and current Premier Investments director. The explanatory memorandum released on Monday reveals the Myer board was open to talks with Mr Lew’s Premier Investments on Mr McCartney’s nomination, given his retail experience.

“The company also sought confirmation from Premier of its agreement with the company’s fundamental policy that at all times the majority of the board of Myer should be independent directors with an independent chairman,” the Myer notice of meeting stated.

“Further, the company sought Premier’s agreement to a standstill, namely that Premier would not acquire any further Myer shares unless pursuant to a takeover offer made to all shareholders.”

Mr Lew rejected the share-buying standstill. “Premier Investments did not agree to a standstill, referring to the company’s request as surprising and inappropriate,” Myer said in its notice of meeting.