"Sources close to the situation say that Woolworths (SA) has been running the ruler over Myer with an eye to a takeover but wasn't in a position to move yet because it was too busy working on the transformation of David Jones which it bought in 2014.
If Lew's ambition to use the 10 per cent stake as leverage to force Woolworths to ultimately pay a higher price for Myer it would be a corporate deja vu moment.
Back in 2014 he bought a blocking stake in David Jones which he used to force Woolworths to buy the remainder of Country Road (Lew was stuck in Country Road as a minority shareholder) before he removed the roadblock and enabled the South African retailer to reach their goal of taking over David Jones.
It was the kind of corporate chess manoeuvre that is typical of the rags to riches retail entrepreneur who is known for his patience and his readiness to employ a hard ball strategy."
The article is dated awhile ago but its quite interesting. Basically, Solomon Lew either took a stake as a maneuver to facilitate a higher premium if Woolworths (SA) offer a take over or he is prepping a takeover. Solomon has extensive knowledge of Myer after being an executive for Myer so he would have an idea of what needs to be done. Citi Group released an statement saying Myer was ripe for a takeover given the current share price was trading around $0.95. Solomon has either two plays, he could offer a takeover for $1.20 - $1.30 and i think people would grab it or he could wait for Woolworths (SA) to offer a bid and he could pocket a quick profit (like the DJ takeover). Interesting times.
MYR Price at posting:
91.5¢ Sentiment: Hold Disclosure: Not Held
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