New York, NY, Apr. 15--Federated Department Stores Inc. the parent of Macy's and Bloomingdale's, said on Wednesday it was in talks to acquire Marshall Field's department stores from Target Corp.
Target last month said it would consider selling its newly revamped Marshall Field's chain and its lower-end Mervyn's stores, giving it money and time to focus on its more profitable discount stores.
Analysts had estimated the department stores could fetch more than $3 billion.
Federated and May Department Stores have been seen as the most likely bidders for Marshall Field's, but investment bankers said Target may be forced to sell Mervyn's in regional chunks or close a substantial number of stores.
Marshall Field's has a marquee name in several major markets, including Chicago, but Mervyn's stores failed to distinguish themselves from lower-priced competitors such Kohl's Corp. and J.C. Penney Co., said one retail investment banker who is not involved in the deal.
