David Jones seeks to fend off further ASIC intervention in Woolworths takeover
David Jones will attempt to head off further intervention by the Australian Securities and Investments Commission in Woolworths’ $2.2 billion takeover of the company by trying to convince the regulator that shareholders are fully informed and that the board is acting in their best interests.
David Jones’ board is alarmed at the last-minute intervention by ASIC and believes the market regulator could be doing more harm than good by raising concerns about a multi-million dollar inducement or collateral benefits to rag trader Solomon Lew.
The board fears that ASIC’s intervention could derail the David Jones scheme of arrangement, potentially depriving shareholders of Woolworths’ $4 a share offer, or further delay the scheme, which has already been postponed for two weeks. Sydney Morning Herald – Read more…