Myer shares soar after new reports

Myer’s share price has shot up 8.7 per cent in early Friday trading as reports swirl that rival David Jones is considering acquiring the department store.

Reports this morning in The Australian cite the confidence of market sources that DJs parent Woolworths Holdings is looking seriously at a potential acquisition given Myer’s current market value of around $300 million.

The South-African based retail business recently booked a $712 million write down on the value of DJs, which it acquired in 2014 for $2.15 billion, but is thought not to have been soured on the prospect of investing additional capital in Australia’s department store sector, given the opportunity to significantly increase its scale.

But a spokesman for Woolworths Holdings told AAP the rumours were untrue and the company had no plans to buy Myer.

“These rumours have no basis,” he said.

“We are not considering an acquisition of Myer and there have been no discussions regarding an acquisition with advisers or between the two companies.”

Should an offer be made Myer’s largest shareholder Premier Investments, chaired by retail veteran Solomon Lew, could present as a thorn in Woolworths’ side.

It would not be the first time, Lew held out on the Johannesburg-listed business over its DJs acquisition in 2014, buying up 10 per cent of the company’s shares before the deal, selling at a premium.

Myer’s share price closed at 35 cents on Thursday evening, but by 11:40 AEST on Friday was trading at 38 cents.