Department store David Jones is preparing to start talks with Myer over a $3 billion merger proposal.

David Jones will engage with Myer over the next fortnight but remains convinced the original proposal made last October does not properly value the department store, reports The Australian Financial Review.

According to the AFR, the David Jones board and its advisers are waiting to see evidence from Myer that it is prepared to offer a price that they believe reflects the retailer’s true value.

“The company is not against a merger as long as it’s on the right terms – it always comes down to the price,” a Myer insider said.

The news comes after David Jones chairman, Peter Mason, confirmed he would be leaving the department store following

Last week, Myer said it wanted David Jones to reconsider its proposal.

Chairman Paul McClintock wrote to David Jones on Thursday to reiterate Myer’s willingness for a merger.

“We hope that David Jones may come to a view that such a transaction as proposed, or indeed as they might wish to review with us, would be in the interest of both companies’ shareholders,”McClintock said.

“We look forward to the opportunity to meet with David Jones in the future to discuss these matters.”

Myer also reappointed Bernie Brookes as Myer CEO last week on an open-term contract with the intention of presenting him as a potential chief of the merged businesses.