Australia's David Jones says CEO to stay on

SYDNEY, March 11 (Reuters) - Australian up-market department store David Jones Ltd DJS.AX said its chief executive has decided to stay on, reversing a decision made late last year, at a time when the company is facing a takeover approach from bigger rival Myer Holdings Ltd MYR.AX .

Paul Zahra has committed to stay on as chief executive manager and managing director of the company, David Jones said in a statement on Tuesday.

The company said it has stopped an external search for a successor.

David Jones rejected a A$1.4 billion ($1.26 billion) takeover bid from Myer last year, but Myer said last month it had asked David Jones to reconsider the offer.

News Search ID:nL3N0L437F

($1 = 1.1086 Australian Dollars)

(Reporting by Maggie Lu Yueyang; Editing by Christopher Cushing)

((maggie.luyueyang@thomsonreuters.com)(+61 2 93731819)(Reuters Messaging: maggie.luyueyang.thomsonreuters.com@reuters.net))

Keywords: AUSTRALIA DAVID JONES/