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David Jones boss Paul Zahra could be last man standing after board spill David Jones boss Paul Zahra could be last man standing after board spill
(7 months later)
Paul Zahra could stay on as David Jones boss and revive negotiations with Myer about a possible merger in the wake of chairman Peter Mason’s resignation, analysts have said.Paul Zahra could stay on as David Jones boss and revive negotiations with Myer about a possible merger in the wake of chairman Peter Mason’s resignation, analysts have said.
With Mason and fellow directors Steve Vamos and Leigh Clapham forced out of the boardroom by disgruntled shareholders, Zahra could end up staying on despite announcing his intention to stand down from the post last year. With Mason and fellow directors Steve Vamos and Leigh Clapham forced out of the boardroom by disgruntled shareholders, Zahra could end up staying on despite announcing his intention to stand down from the post last year.
Shareholders would prefer Zahra to stay in the role, especially Shareholders would prefer Zahra to stay in the role, especially given how long it was taking to find a successor, IG market analyst Evan Lucas said.
given how long it was taking to find a successor, IG market analyst Evan
Lucas said.
“He was certainly doing a reasonable job when he was there and I think the market would be happy to see him stay,” he said.“He was certainly doing a reasonable job when he was there and I think the market would be happy to see him stay,” he said.
Shares in the department store closed up 0.32% at $3.12 on Tuesday despite the loss of the chairman and two directors while Myer shares fell 2% to close at $2.56.Shares in the department store closed up 0.32% at $3.12 on Tuesday despite the loss of the chairman and two directors while Myer shares fell 2% to close at $2.56.
Options Xpress market analyst Ben Le Brun said the board resignations could put a possible merger with Myer back on the table.Options Xpress market analyst Ben Le Brun said the board resignations could put a possible merger with Myer back on the table.
David Jones last year rejected a merger proposal from Myer, saying it did not represent fair value to shareholders.David Jones last year rejected a merger proposal from Myer, saying it did not represent fair value to shareholders.
“Perhaps these changes overnight might just get both parties back to the negotiating table,” he said.“Perhaps these changes overnight might just get both parties back to the negotiating table,” he said.
Stephen Mayne, of the Australian Shareholders’ Association, said a refreshed board may look at a merger proposal differently.Stephen Mayne, of the Australian Shareholders’ Association, said a refreshed board may look at a merger proposal differently.
“The “The chairman has led the dismissing of the proposal, the DJs shareholders are keen to see the proposal at least discussed and, who knows, Paul Zahra could run the combined business,” Mayne told ABC.
chairman has led the dismissing of the proposal, the DJs shareholders
are keen to see the proposal at least discussed and, who knows, Paul
Zahra could run the combined business,” Mayne told ABC.
“You would have to think that is in the prospects now that the directors who were so opposed to him are out of the way.”“You would have to think that is in the prospects now that the directors who were so opposed to him are out of the way.”
But any merger proposal would still face regulatory hurdles, Le Brun said.But any merger proposal would still face regulatory hurdles, Le Brun said.
Nor would a merger remove the underlying difficulties faced Nor would a merger remove the underlying difficulties faced by both Myer and David Jones, as they cope with competition from online and international retailers.
by both Myer and David Jones, as they cope with competition from online The resignations of the directors follows investor outrage over the purchase of more than 32,000 David Jones shares by Vamos and Clapham in October 2013.
and international retailers. The purchases, which were approved by Mason, were made the day after the company received Myer’s merger proposal, and days before a better-than-expected sales report.
The resignations of the directors follows investor outrage over
the purchase of more than 32,000 David Jones shares by Vamos and Clapham in October 2013.
The purchases, which were approved by Mason, were made the day
after the company received Myer’s merger proposal, and days before a
better-than-expected sales report.
“It is a positive that they are falling on their swords and doing the right thing for the company,” Lucas said.“It is a positive that they are falling on their swords and doing the right thing for the company,” Lucas said.
“It is good from an operational and board management perspective “It is good from an operational and board management perspective because they (the directors) have obviously been divisive figures in the company.”
because they (the directors) have obviously been divisive figures in the David Jones board member Jane Harvey has been promoted to deputy chairwoman in the wake of the resignations and will lead the search for three new non-executive directors.
company.”
David Jones board member Jane Harvey has been promoted to deputy
chairwoman in the wake of the resignations and will lead the search for
three new non-executive directors.