Meanwhile, Myer’s recent profit warning has revived talk in the market it will launch a rights issue after Christmas, despite denials by the company that such a move is on the cards. Myer counts Goldman Sachs and Flagstaff as its advisers and the expectation is that it would raise about $150m or $200m. The shares closed yesterday at 62.5c and some analysts say a rights issue may have to be discounted to about 30c. Any raising would be likely to strengthen the grip on the company by Solomon Lew’s Premier Investments, which holds a 10.8 per cent stake. Sources say Myer is wrestling with lease liabilities that are higher than its debt levels and its viability rests on its ability to negotiate with its landlords. Myer’s debt is thought to be valued at about $300m after a deal with ANZ, National Australia Bank, Commonwealth Bank, Westpac, SMBC and Mizuho to access up to $600m worth of financing last year.
MYR Price at posting:
61.0¢ Sentiment: Sell Disclosure: Not Held
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