{"id":53052,"date":"2014-06-20T02:50:11","date_gmt":"2014-06-20T06:50:11","guid":{"rendered":"http:\/\/countingpips.com\/?p=53052"},"modified":"2014-06-20T02:50:11","modified_gmt":"2014-06-20T06:50:11","slug":"why-david-jones-ltd-share-price-dropped-today","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/06\/why-david-jones-ltd-share-price-dropped-today\/","title":{"rendered":"Why David Jones Ltd Share Price Dropped Today"},"content":{"rendered":"
June 20, 2014<\/div>
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By MoneyMorning.com.au<\/u><\/a><\/p>\n

What happened to the David Jones Share Price?<\/h2>\n

\nShares in retailer David Jones Ltd [ASX:DJS]<\/strong> slumped by more than 2% today, lagging a soft Australian stock market<\/a>. After holding north of $3.80 for most of the past two months, the stock is now starting to breach that level.\n<\/p>\n

Why did this happen to the David Jones Share Price?<\/h2>\n

\nLast night David Jones announced that it would postpone a shareholder meeting to vote on a takeover offer from South African suitor Woolworths Holdings Ltd [JSE:WHL].<\/p>\n

Woolworths needs 75% of the shares to vote in favour of its proposal for the takeover to succeed.<\/p>\n

Solomon Lew, chairman of Premier Investments Ltd [ASX:PMV] has thrown a spanner in the works by quietly amassing a stake in DJs. The market believes he could potentially block the deal.<\/p>\n

Mr Lew doesn\u2019t necessarily control enough shares yet to kill the takeover off his own bat. But postponing the shareholder meeting indicates that DJs\u2019 management is taking Mr Lew\u2019s threat seriously while it seeks to understand his demands.<\/p>

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The smart money is suggesting Mr Lew will try to negotiate a \u2018hostage swap\u2019, where Woolworths buys from Mr Lew the shares in Country Road Ltd [ASX:CTY] that it doesn\u2019t already own\u2026and in return Mr Lew might not block Woolworths\u2019 takeover of David Jones.<\/p>\n

The increased risk of the $4 per share takeover bid failing has put some pressure on the David Jones share price today.\n<\/p>\n

What now for David Jones?<\/h2>\n

\nSolomon Lew is a billionaire and a deeply experienced retail businessman. There is plenty of scope for him to throw his weight around and threaten this deal further. It\u2019s hard to forecast how this story will play out from here, but now looks like a particularly risky time to wade in.\n<\/p>\n

Tim Dohrmann+<\/a>
\nSmall-Cap Analyst, Australian Small-Cap Investigator<\/em><\/strong><\/p>\n

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\nBy MoneyMorning.com.au<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By MoneyMorning.com.au What happened to the David Jones Share Price? Shares in retailer David Jones Ltd [ASX:DJS] slumped by more than 2% today, lagging a soft Australian stock market. After holding north of $3.80 for most of the past two months, the stock is now starting to breach that level. Why did this happen to […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-53052","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/53052","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=53052"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/53052\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=53052"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=53052"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=53052"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}