US department store merger stalls on price
May and Federated haggle over deal
Merger talks between US department store groups Federated and May are reported to have stalled as the two sides debate the value of the deal.
The [i]Wall Street Journal[/i], which first broke news of discussions between the two retailers, reported that Federated chief executive Terry Lundgren met May’s acting chief executive officer, John Dunham, last Wednesday in St. Louis to discuss the deal.
The sticking point is said to be the amount that May, which operates chains including Lord & Taylor, David’s Bridal and Marshall Field’s is looking for from Macy’s and Bloomingdale’s owner Federated.
The combined business would operate almost 1000 stores in the US with a $30bn turnover. It would be far better able to compete with the growing buying power and domnance of value retailers in the US.
