Australia watchdog launches retail bid investigation

3 July 2012 Last updated at 23:05 ET Help

Australia's corporate watchdog has launched an investigation into bid that was made for the retailer David Jones by a British company that reportedly operates out of a post office box.

Shares in David Jones, which has 37 department stores across Australia, jumped 15% last Friday, when it announced the 1.65bn Australian dollars ($1.69bn; £1.08bn) offer from the UK firm EB Private Equity.

The stock then slumped 10% on Monday, after the bid was withdrawn.

The BBC's Duncan Kennedy reports.

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