May, Federated merger talks end

Merger talks between May Department Stores Co. and rival Federated Department Stores Inc. reportedly have ended after the two retailers could not agree on how much Federated would pay for May.

Negotiations broke down last week between Cincinnati-based Federated—owner of Macy’s and Bloomingdale’s chains—and St. Louis-based May, operator of Lord & Taylor, Famous-Barr, The Jones Store, Filene’s and other regional department stores, The Wall Street Journal reported Tuesday, citing unidentified people familiar with the matter.

The May board was prepared to negotiate a deal, with May’s interim chief executive John Dunham talking by telephone with Federated CEO Terry Lundgren before the dialogue ended after the price emerged as the sticking point, the Journal said.

The story made no mention of how far apart the two sides were.