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Myer has no idea about reason for 18pc share spike

08:25 UTC+8 March 28, 2017 | Thuy Ong

Shares in Myer have fallen 3.2 per cent in early trade today. (AAP: Joel Carrett)

Myer has told investors it has no information that could explain why its shares spiked 18.3 per cent in yesterday's trading session.

Key points

  • Shares in Myer spiked 18.2 per cent in late afternoon trade on Monday
  • The company says it has not received information that could explain why
  • Analysts speculate Australian billionaire Solomon Lew is picking up the shares

In a statement released to the ASX this morning, Myer said it has noted yesterday's high turnover of shares and media speculation surrounding potential corporate activity involving the company, such as a potential takeover.

"Myer has not received any communication in relation to yesterday's trading," the company said.

"Myer will continue to keep the market informed in accordance with its continuous disclosure obligations."

Shares closed at a one-month high of $1.26 yesterday after 81.7 million shares worth $93.9 million changed hands at 3:28pm (AEDT).

Myer has been a rumoured takeover target for years, with the company trading well below its listing price of $4.10.

However, the department store operator is also one of the most shorted stocks on the Australian share market - meaning many investors are betting on its share price to fall even further.

Analysts have speculated that Australian billionaire Solomon Lew is picking up the shares.

Mr Lew is the chair of Premier Investments, which is behind well-known Australian brands including Smiggle, Just Jeans and Jay Jays.

The ABC has contacted Premier Investments for comment.

Shares in Myer gave up some of yesterday's surge, dropping 3.2 per cent to $1.22 by 10:50am (AEDT), compared to a broader market rise of 0.7 per cent on the ASX 200.

AustraliaPlus


 

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