Myer shares jump on reports of Solomon Lew's interest in a bid

Getty/Lisa Maree Williams

The market liked reports that Myer could be the subject of a takeover bid, either from private equity or retail guru Solomon Lew.

Shares in Myer, which have fallen from around $2.50 in the last year due to poor sales, jumped today by more than 3% to $1.35.

Richard Umbers, the new CEO of Myer, admitted last month the store has lost relevance with some customers after posting a grim earnings report showing profit down 23% for the first half.

The Australian Financial review reported that Solomon Lew, who was once chairman of Myer, and private equity firms are said to be crunching the numbers on a bid.

Lew’s listed Premier Investments, which has retail stores including Just Jeans and Portmans, has been doing well, posting 9.1% half year rise in profit to $56.8 million.

The department store’s market capitalisation is under $800 million while Lew’s Premier — run by former David Jones CEO Mark McInnes — is about $2.02 billion.

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