Price: Each share of May stock will be converted into $17.75 in cash and 0.3115 shares of Federated stock. Based on the 10-day trading average of Federated stock as of last Friday, that equates to $35.50 per share, or $11 billion total purchase price. Federated would also assume May debt that totaled about $6 billion at the end of 2004.
The combined company would have about 950 department stores and an additional 700 bridal and formal wear stores. It would operate in every state except Alaska, along with Guam, Puerto Rico and the District of Columbia. The combined company will be in the nation's top 65 markets except Jacksonville, Florida.
Federated doesn't plan to change May store names before 2006, but then will rename its stores - even some Bloomingdale's stores - as Macy's. That means that May store names including Filene's, Foley's, Hecht's and Kaufmann's could disappear next year. The names Rich's (an institution in my current home of Atlanta) and Burdines (a Florida landmark) are in the process of disappearing right now.
Source: Associated Press
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