Solomon Lew could be trying to buy 28 million David Jones shares, which is around 5.2% of the company.
Fairfax Media is reporting that an unidentified buyer, probably Lew, has made an offer for the stock at $3.90 per share.
Lew already owns 0.62% of David Jones, and it is believed he controls another 5% through a derivative swap contract with Deutsche Bank.
South African retailer Woolworths has made a takeover offer for David Jones which will be voted on in 15 day’s time.
Investors in Woolworths are also set to vote on the deal on Tuesday night Australian time, and speculation over Lew’s intentions have coloured discussions between management and major shareholders.
It is unclear why Lew would want to buy a huge stake in David Jones, though there has been speculation his raid on the shares could scuttle the deal, which the DJs board has recommended its shareholders accept in the absence of a superior offer.
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