Can't see anybody accepting a nil premium takeover personally. For some reason I shop sometimes at DJs - but never at Myer - I'm a sucker for their luxury imported tea in the food department in Melbourne city centre. Not much basis for a trading position though - lol.
I think that Zahra has impressed as both a nuts and bolts kind of manager, along with a touch of "rational" perfectionism, and to my mind sounds like he has a slight edge over Brookes. And then Zahra is younger which is a huge positive in my mind. I also like it that DJs board has been rejuvenated, and from rumours there will be some friction gone.
So I think any merger is very unlikely without a fair premium, and maybe Brookes would be a better chairman and director than MD IMO if they combined. I don't think the merger is anything other than a distraction. I also think that MYR might be factoring in a sale and leaseback of DJs flagship to boost the immediate dollars - however a DJ's defence against a bid could do that straight away. I personally think they should keep the flagship city centre stores forever - they are a super scarce asset IMO, and involve a big tax liability too. Finally there is an eventual risk in x number of years that they lose tenancy there.
Just some thoughts - I longed MYR this morning for a short term trade - will see what happens. I'll obviously not be a happy trader if MYR makes an offer at a premium, but I can't imagine it would be responsible for MYR to not let DJ's finalise their review and response first.
MYR Price at posting:
$2.53 Sentiment: ST Buy Disclosure: Held
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