David Jones has been offered $1.65 billion for a full takeover by a British private equity firm, a move that has sparked a sharp rise in the upmarket retailer's share price.
department store chain said EB Private Equity, a Luxembourg and UK property developer and private equity partner, was behind the unsolicited takeover offer on Friday.
The telegraphed move on David Jones, whose shares hit a record low earlier this month, has prompted analysts to expect that other bidders could enter the fray to take advantage of the near bargain-basement price for the retailer.
IG Markets analyst Cameron Peacock said it was not surprising to see some offshore interest in Australian retailers which had been trading at bargain basement prices.
"Now's the time to buy a retailer or make a move because you position yourself for when sentiment changes," Mr Peacock said.
"You want to do it when sentiment is down, when share prices have been hammered and there's a sense of frustration and depression in the air, which there certainly has been this quarter."
