Federated Sidesteps Rumor Question
New York City New York City , Amid speculation that Federated Department Stores might be interested in a major acquisition—for instance Dillard Inc. or May Department Stores Co.—Federated CEO Terry Lundgren told the audience at the National Retail Federation convention that speculation and rumor aren’t worthy of response.
His comment, when speaking at a session this morning: “I think we’re supposed to acquire every store in America. That is speculation and rumor, and we can’t and won’t respond to speculation and rumor.”
May became a subject of takeover speculation when CEO Gene Kahn resigned from the St. Louis-based chain last week.
Friedman’s Files Chapter 11
Savannah, Ga., Jewelry retailer Friedman’s filed voluntary petitions for reorganization under Chapter 11 on behalf of the company and nine of its subsidiaries. The company said the filing should provide it with the breathing room necessary to complete financial restructuring initiatives it embarked upon more than five months ago.
Blockbuster Still Committed to Hollywood Entertainment
Dallas, Blockbuster announced that it remains committed to pursuing an acquisition of Hollywood Entertainment despite the recent announcement of the entry into a definitive merger agreement by Hollywood and Movie Gallery.
“We are disappointed that the special committee of Hollywood’s board of directors elected to enter into a merger agreement with Movie Gallery without giving Blockbuster a fair opportunity to participate in the auction process,” said John Antioco, Blockbuster chairman and CEO. “While it no longer makes sense at this time for Blockbuster to commence a tender offer at $11.50 per share in light of the Movie Gallery agreement, we are evaluating the price that Blockbuster would be willing to offer for Hollywood in light of various factors, including the termination fee to Movie Gallery that is included in the merger agreement.”