Myer ‘disappointed but unsurprised’ by Premier Investments

Department store retailer Myer has responded to the broadside delivered by veteran and chairman of Premier Investments yesterday, asserting its “disappointment”.

Yesterday, Premier released a statement which ruled out making a takeover offer for Myer and again reiterated that it will be monitoring the Myer “strategy day” on November 1 “very closely”. Premier again called upon the company to announce its current sales and profits for the Q1 period “so the market is fully informed when assessing the strategy.”

Myer chairman Paul McClintock said the annoucement was “disappointing, but unsurprising”.

“We have attempted to engage in constructive dialogue with Premier for many months, but regrettably this has not been possible,” he said.

McClintock said Myer’s board had considered Premier’s “informal proposal” to appoint three nominee directors, but rejected it on the basis of a potential conflict of interest, “given Premier and its associates’ status as one our largest suppliers and competitors.”

“The Myer board continues to support the new Myer strategy and recommends that shareholders vote in favour of all resolutions, including the election of three directors put forward by the board,” he said.

Incoming Myer chairman Garry Hounsell and former Qantas director will step into the new role when McClintock retires next month.

Myer has also announced the appointment of JoAnne Stephenson to its board as a non-executive director.

Premier said it will vote against the appointment of all directors proposed in Myer’s Notice of Meeting, including Hounsell.