WSJ: Federated & May End Merger Talks
New York, NY, February 15--Merger talks between Federated Department Stores and May Department Stores broke down after the two companies could not agree on the price, according to a report in the Wall Street Journal.
The Journal cited people familiar with the matter.
The newspaper said the May board was prepared to negotiate a deal, but May's interim chief executive officer, John Dunham, and Federated CEO Terry Lundgren could not agree on a price.
According to the Journal, Federated could now look at other acquisition targets, including the department-store division of Saks Inc. The Saks board is expected to make a decision about a spinoff or sale of the group in the next several weeks, according to the article.