Country Road gets a boost from DJs deal

Minority investors reportedly welcome standoff between Solomon Lew, David Jones.

A minority investor in Country Road (CTY) says he is "laughing all the way to the bank" after retail king Solomon Lew took a stake in David Jones, The Australian Financial Review reports.

Mr Lew's company blocked South African-based Woolworths' takeover offer for Country Road in 1997, and he has recently taken a stake in David Jones, prompting speculation he may wish to block a takeover from the same Woolworths.

According to the newspaper, stockbroker Nestor Hinzack says "the more tension that goes into it, the better," after he bought into Country Road at the time of Woolworths' $2 a share bid, then watched the share price jump to almost $15 this year. 

Sources told the AFR they believe Mr Lew wants Woolworths to buy him out of Country Road at a significant premium of as much as $16 per share.

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