Federated and May discussing merger

Federated Department Stores reportedly is discussing the acquisition of its chief rival, May Department Stores, in a deal that would create a combined company with $30 billion in sales. Federated, which operates Bloomingdale's and Macy's chains, is in preliminary discussions with May, which operates Filene's, Famous-Barr, Marshall Field's and Lord & Taylor. [...] Federated has a market value of $9.7 billion, while May is valued at $9.2 billion. In 2002, the companies discussed a potential merger, but a deal could not be reached. [...] Last Friday May's chairman and CEO, Gene Kahn, resigned suddenly with no explanation and the company named president John Dunham to serve as acting chairman and CEO. That development could clear the way for Federated Chairman and CEO Terry Lundgren to lead a combined company.