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Wednesday, 9 April 2014

David Jones shares rise 20% following takeover reports

The shares of department store David Jones have risen by as much as 20 per cent after reports indicated that the company might be acquired by South African retail chain Woolworths Holdings.
David Jones shares rise 20% following takeover reports

Woolworths has said that it is planning to acquire David Jones in a deal that will value the company's share at $4 cash per unit. The price will represent a 25 per cent premium on the yesterday's closing price for David Jones and a 39 per cent premium to the closing price on January 30. David Jones chairman Gordon Cairns said the Woolworths has offered an attractive proposal with significant premium on the share price. Mr Cairns also pointed out that offer was earlier priced below $4 per share.
"While we believe in the strategic merits of our proposal and the potential value accretion for both sets of shareholders, we have always maintained a disciplined approach to valuation, and as a consequence we will advise David Jones today of the withdrawal of our proposed merger of equals," Myer said in a statement.
David Jones shares rose 72.5c to $3.915c and even touched a high of $4 this afternoon

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