DJ DENIES MYER BID RUMOURS
MYER shares have surged amid renewed speculation David Jones is weighing up a takeover offer for its long-time arch enemy.
Vigorous denials by David Jones yesterday failed to convince investors a tie-up between the two department store chains was not a possibility, with Myer’s share price surging more than 12 per cent during trade.
The latest bout of speculation that South African retail titan Woolworths Holdings — owner of David Jones and the Country Road Group — was crunching the numbers on a possible deal came after Myer’s share price hit an all-time low on Thursday.
David Jones is in the middle of a major restructure that includes centralising operations at its new Melbourne headquarters, overhauling its Sydney flagship store and pouring $100 million into a new gourmet food offering.
Any takeover deal would also involve negotiations with Myer’s biggest shareholder, retail billionaire Solomon Lew,
David Jones moved rapidly to hose down speculation of an impending tie-up, saying in a statement that “these rumours have no basis”.
“We are not considering an acquisition of Myer and there have been no discussions regarding an acquisition with advisers or between the two companies.”
Nonetheless investors rallied around Myer.
Myer shares ended the session 7.3 per cent higher.