AusBN - Retail group Premier Investments (ASX:PMV) has bought an 11% stake in upmarket department store Myer (ASX:MYR), but has denied claims it will lodge a takeover bid for the retail chain.
Premier, owned by business magnate Solomon Lew, made the AUS$101 million share purchase which sparked an 18% rise in the value of Myer shares immediately after the transaction was announced.
Myer has been subject of takeover speculation for some time after it has struggled in an increasingly saturated Australian retail market.
The businesses financial results have suffered for a number of years, with sales figures most recently dropping by 0.6% to $1.78 billion in the 26 weeks to January 28.
As more international brands enter the Australian retail sector, a number of established companies have felt the effects, most notably fashion brands David Lawrence and Marcs, who were placed in administration last month.
A Myer spokesman said the company acknowledged Premier's stake but maintained that the team remained focused on its transformation plan.