Myer board on collision course with billionaire shareholder

Myer’s board has pushed main shareholder Solomon Lew to place up or shut up on directing visitors on the retailer, asking him to cease shopping for extra shares except he was keen to lob a takeover supply for the corporate.

The “standstill” request was revealed by Myer in its discover of assembly launched on Monday, which additionally outlined the board’s place on the election of Lew’s hand-picked nominee, Terry McCartney, as director on the retailer’s AGM in November.

“The corporate sought Premier’s settlement to a standstill, particularly, that Premier wouldn’t purchase any additional Myer shares except pursuant to a takeover supply made to all shareholders,” Myer mentioned within the discover.

Premier has rejected Myer’s standstill request, labelling it “stunning and inappropriate”, setting the scene for a doubtlessly bruising AGM in a month’s time.

The Myer board, led by JoAnne Stephenson, mentioned it’s ready to work with McCartney topic to protocols that handle potential conflicts together with his position as a director at Lew’s Premier Investments. Nevertheless, it has left the last word choice on his nomination to Myer shareholders.

In its discover on Monday, Myer mentioned it stays open to discussing acceptable board illustration for Lew’s Premier Investments, which at the moment owns 22.9 per cent of Myer and doesn’t have any representatives.

The board mentioned it determined to not help McCartney’s nomination attributable to Premier not offering sure safeguards – together with the necessity for a lot of the board, and its chair, to be unbiased.

“The board has due to this fact not made a suggestion as as to whether shareholders vote in favour or
towards…the election of Mr McCartney.”

“This can be a matter to be decided by the shareholders, with no suggestion of the board,” Myer mentioned.