Department store, David Jones, has indicated that it would reconsider a merger proposal from Myer if the terms of the $3 billion offer were significantly improved.

Last week the upmarket department store confirmed it had rejected a proposed merger offer from its rival.

Myer invited David Jones on October 28, 2013 to enter talks about a potential union, offering to give Myer shares to David Jones shareholders in order to create one company, however, the offer was quickly rejected by the board of David Jones.

Peter Mason, chairman of David Jones, will hold discussions with key shareholders this week, and has not ruled out a merger with Myer, saying the board will be willing to engage it if was in the best interest of shareholders, reports the Australian Financial Review.

“The view of the board is if there is something put on the table worthy of consideration, they would,” a spokesperson for Mason told the AFR.

“If it adds value to our shareholders we’d certainly consider it.”

“But if Myer is interested in getting it back on the table, they haven’t indicated that, and they didn’t try to engage after the formal rejection.”