Valuation

AFR ran an article yesterday on sector M&A outlook with Myer listed as a potential take-over target for international players citing Credit Suisse Tevfik. Their logic was that it was currently trading on a 40%/50% discount to the global sector average.
IMO Myer shares appears to be undervalued given some factors such as a DJ's acquisition price comparison and it currently trades with an 8.29% dividend yield. Given its merger talks with David Jones ended where does this leave Myer's long term growth strategy? The retail sector has not been a great place to operate for busineseses for the last few years but Myer has survived in this time and is still profitable with good positioning for any growth that may come through over the next few years given it's brand. In a low interest on deposits environment the dividend yield alone is attractive for investors IMO.