The merger of Myer and David Jones Limited
(ASX:DJS) may still be on with reports this morning that talks between the two companies will revisit the matter after the release of interim profit results in a fortnight.
Analysts had become increasingly skeptical that Myer would be able to meet any premium demanded by DJ’s shareholders if the deal was to proceed. David Jones shares have risen 13 per cent since the original Myer offer. The price differential now would require a ratio of 1.26 Myer shares for every David Jones share - a 19 per cent increase.
Since the original offer David Jones posted strong sales growth while Myer are set to report an 8 per cent fall in profit. In the first half of the 2014 financial year, David Jones reported a net profit of $95.2 million.
