News: Myer defends DJS approach

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Myer Holdings Limited (ASX:MYR) has released a statement confirming and defending its proposed merger with David Jones Limited (ASX:DJS).

 

The department store chain says the merger would have delivered compelling value for the shareholders of both companies as well as providing strategic opportunities to grow both brands.

 

Myer’s statement comes after news broke that David Jones declined a proposed merger in October last year, saying the potential transaction did not have sufficient merit for David Jones shareholders to warrant engaging in discussions and providing the access and information.

 

The proposal from Myer included a number of points such as the merged company would have operated the two businesses separately, equipping it to compete effectively in the changing retail market.

 

Myer Holdings reported a net profit of almost $130 million in the 2013 financial year.