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. Based on the time value of money, every week the $2. 2 billion offer is delayed costs shareholders $1. 7 million. (Time value of money is a concept describing the future purchasing power of money taking into account factors such as interest accrued and inflation. "ASIC’s role should be protective of shareholders, not a destructive one,’ said one source. "We are the meat in the sandwich.
David Jones also believes it is doing all it can to ensure the integrity of the scheme by providing shareholders with additional information about recent developments including the offer for Country Road, the history of Mr Lew’s 17-year stoush with Woolworths and the fact that he will receive a massive premium for his Country Road shares.
David Jones has been monitoring the votes cast ahead of the scheme meeting on July 14 and believes that shareholders are overwhelmingly in favour of the scheme proceeding — even with the knowledge that Mr Lew may be receiving a benefit. "The feedback we’re getting is that 65,000 David Jones shareholders want $4 a share," said one source who declined to be named.
Read more here: SMH