David Jones has responded to Myer's letter yesterday, confirming that a merger between the two companies is back on the boardroom table for consideration.
David Jones released the below statement, revealing it would “consider” the proposal, in response to a letter it received from the chairman of Myer Holdings Limited yesterday, reiterating its interest in a merger between the two companies.
“David Jones has received today a letter from the chairman of Myer Holdings Limited reiterating its interest in a merger between the two companies
“A copy of this letter has been lodged with ASX.
“The Board of David Jones is considering the letter and will respond to Myer in due course and update the market accordingly.
“The Board confirms that it will consider any proposal which is on terms that are in David Jones shareholders’ best interests.”
The move follows Myer's confirmation yesterday that it has reached agreement with current CEO and MD Bernie Brookes to re-engage him on an ‘open term’ contract, despite the previously advised conclusion of his contract in August 2014.
In its letter to David Jones explaining the re-appointment, Myer chairman Paul McClintock said the company had re-appointed Brookes “provide clarity about the leadership of Myer”.
He added that should the merger between the two companies occur, Brookes would also be available to lead the combined company.
As previously reported on ragtrader.com.au, Myer's initial merger proposal to David Jones was made on October 28 2013. The board of David Jones declined this initial opportunity to engage with Myer on the proposal.