The end of a 175 year Australian retailing tradition might be coming it seems, after David Jones recommended to shareholders that they accept an offer from the South African Woolworths for $4.00 a share on Wednesday.  The offer represents a premium of 25% above the closing market price for the retailer on Tuesday.

But the big question I have to ask is… should they sell now? Or is this another example of Australian shareholders selling out when times are feeling tough, only to wake up years later and wonder why they lost hold of a precious and valuable brand and national asset?

“This is a compelling proposal which represents a significant premium to not only our intrinsic value but also to broker valuations and to recent share prices,” chairman Gordon Cairns said.

“It represents a substantial earnings multiple.”

There is no doubt, the times for the retailer are not as good as they have been, but with consumer confidence, property prices and business confidence on the rise, retail is normally renowned for its recovery.

So have your say today… Should shareholders and the board sell out for a short term profit or hold on to our national brand for the future?