Premier escalates war

Shots fired in the battle for Myer’s boardroom

INCOMING Myer chairman Garry Hounsell has branded Premier Investments’ push for board seats a “threat” as it would give a competitor access to confidential boardroom discussions.

The most strident response yet from Mr Hounsell to a push to shake up the Myer board was issued as Premier — backed by retail magnate Solomon Lew — warned it was considering taking legal action against the department store chain for allegedly misleading the market about the health of its business.

The war of words between Myer and its biggest shareholder shows no signs of easing with Mr Hounsell yesterday accusing Mr Lew of trying to gain control of the department store chain without paying a takeover premium.

“The issue of Premier gaining control of Myer without paying you a takeover premium must not be ignored,” he said in a letter to Myer shareholders. Premier is urging Myer shareholders to vote against the appointment of Mr Hounsell as chairman, as well as two other directors, at the retailer’s upcoming general meeting.

It wants two Premier directors appointed to Myer’s board, as well as a third non-Premier director.

Mr Hounsell yesterday said such a proposal would result in Premier controlling 43 per cent of Myer’s non-executive board seats despite owing less than 11 per cent of the retailer’s stock.

“Premier is asking you to vote against Myer’s highly experienced, conflict free and committed independent directors while at the same time failing to disclose its true plans and motives,” he said.

Premier yesterday maintained its daily attack on Myer, saying it is concerned the market is trading on an uninformed basis as a result of a lack of disclosure from the Myer board. Premier is pushing Myer to release its latest quarterly sales and profit numbers at an investor day scheduled for Wednesday to back up claims the $600 million turnaround strategy is working.

“Premier will not accept yet another Myer question and answer session full of hype and management consultant jargon, yet devoid of hard information and numbers,” it said.

“Premier is considering its legal and other options in order to bring about urgently needed change to ensure that Myer shares are trading in an informed market,” it said in a statement. Premier again accused Myer of misleading investors ahead of Premier shelling out $101 million for its 10.8 per cent stake in March.

Myer’s share price has lost one-third of its value since then.