Shares in David Jones have been placed in a trading halt as investors prepare to vote on whether to accept a $2.2 billion takeover from a South African retailer.

David Jones requested the trading halt until the outcome of Monday’s vote is known.

Shareholders were due to begin their meeting at 1000 AEST in Sydney.

The proposed takeover by South African retailer Woolworths is expected to win wide backing at the meeting, but there remains concern billionaire Solomon Lew could move to derail the bid.

Lew, who has been engaged in a long feud with Woolworths over fashion retailer Country Road, owns 9.9 per cent of David Jones.

Woolworths needs to win 75 per cent of the David Jones shareholder vote for the takeover to go ahead, but given a number of investors may not vote, Lew could technically block the vote with a little support from other investors.

In order to get the bid over the line, Woolworths has offered Lew more than $200 million for his Country Road stake but the billionaire has yet to say what he plans to do.

Lew, who owns a little under 12 per cent of Country Road, has reportedly been agitating Woolworths, who owns almost 88 per cent of the company, to buy him out for many years.

If the vote succeeds, David Jones shareholders will receive a payment of $4 per share, which is well above where the shares were trading prior to the takeover offer.

But the takeover will still need approval from the Federal Court at a hearing later this week and corporate regulator the Australian Securities and Investment Commission could still throw a spanner in the works over concerns about the extra incentive offered to Lew.

AAP