National

Myer shares gain after DJs takeover talk

By AAP Newswire

David Jones's parent company says rumours that it is considering acquiring Myer are baseless.

Myer's battered share price has bumped up following a media report that arch-rival David Jones may be interested in buying the embattled department store.

The Australian has reported that David Jones' South African parent company, Woolworths, may be considering acquiring Myer after the latter's market value hit a new low of $296 million.

But a spokesman for Woolworths Holdings told AAP the rumours were untrue and the company had no plans to buy Myer.

"These rumours have no basis," he said.

"We are not considering an acquisition of Myer and there have been no discussions regarding an acquisition with advisers or between the two companies."

Shares in Myer closed at 35 cents on Thursday, but at 1147 AEST on Friday, Myer's shares were up 8.7 per cent to 37.5 cents in a lower overall Australian market.