Department store David Jones is set for another grilling over its handling of a $3 billion merger proposal, with fresh allegations around conflict of interest.
David Jones chairman Peter Mason will address the market this week on why a proposal from Myer was not discussed with shareholders.
The issue of why two directors were allowed to purchase shares a day after the proposal will also be addressed.
While the share purchase was cleared in an investigation by the Australian Securities and Investments Commission (ASIC), Fairfax newspapers have questioned conflicts of interest.
Fairfax newspapers have revealed Mason's son works at the corporate watchdog.
David Jones director Philippa Stone has also been revealed as a partner at Herbert Smith Freehills, the law firm that handled the advice on ASIC's inquiries and other legal matters.
There is no suggestion that Stone was involved in the discussions between ASIC and Herbert Smith Freehills.
Mason's son works in a separate area from the ASIC investigation and also had nothing to do with the inquiries into share trading.
However, Fairfax has questioned Mason's refusal to comment and the two directors' low profile.
"As one investor said: 'It is all about perception and David Jones hasn't covered itself in glory of late'," its papers quoted.