Lew ‘trying to buy Myer on the cheap’
MYER has seized on comments from billionaire investor Solomon Lew to petition shareholders for their support ahead of its annual meeting next week.
Mr Lew’s comments “confirmed the board’s fears” that he was trying to buy the department store chain “on the cheap”, Myer chair Garry Hounsell said yesterday.
In a TV interview on Tuesday night, Mr Lew, who owns a major stake in Myer through retail group Premier Investments, said he had “no interest in making a takeover bid” and was “ruling it out”.
“Premier is saying categorically it is not making a takeover bid and at this point of time definitely not buying any (more) shares,” Mr Lew said on the program.
The company, controlled by Mr Lew, owns 10.8 per cent of Myer after buying into the chain last year.
In a statement yesterday, Myer said Mr Lew’s comments were unqualified.
As a result, Premier was now unable to make a takeover offer for Myer under the Australian Securities and Investments Commission’s Truth in Takeover policy, the statement said.
“Having expressly ruled out paying a premium to obtain control, the only way in which Premier may obtain control of Myer is through a board spill,” Myer said.
“The Myer board continues to believe that if Premier wishes to obtain control of Myer then it should pay shareholders a control premium.”
Mr Lew is seeking to unseat the retailer’s entire board.
He is lobbying shareholders to back his plan for a spill at Myer’s annual meeting next Friday.
“One can only assume that Premier is trying to take control of Myer under the guise of seeking an ‘independent board’,” Mr Hounsell said yesterday.
“Myer shareholders should be alarmed that Premier is trying to get Myer on the cheap for their own benefit.”