Federated switches takeover targets
Talks with May break down over price
US retailer Federated Department Stores is reported to be weighing up other takeover targets after merger talks with rival May Department Stores broke down.
The Wall Street Journal reports that Federated, owner of the Macy’s and Bloomingdale’s chains, is looking at potential acquisitions including the department store division of Saks. The Saks board is currently considering whether to sell or demerge its department store holdings.
The merger talks between Federated Department Stores and May are said to have ended after May’s interim chief executive officer, John Dunham failed to agree on price with Federated boss Terry Lundgren.
[img r]targetstore2.jpg[/img]US analysts see the US department store sector as ripe for consolidation as upmarket branded fashion operators struggle to compete against the growing apparel sales of dicounters such as Wal-Mart, Target and TJX, which operates the TJ Maxx and Marshalls chains in the US, and TK Maxx in the UK.
