Federated Stock Leaps $2.50 on Hopes of New Bid
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NEW YORK — The stock of Federated Department Stores, under a $4.2-billion takeover attack from Canadian developer Campeau Corp., jumped Monday on expectations that a fresh bid might surface.
Shares in Federated, which owns Bullock’s department stores and Ralphs Grocery, closed up $2.50 to $59.125, more than $12 above the $47-per-share tender offer that Campeau launched Jan. 25.
“The market is telling us there is the possibility of a $63-to-$65-per-share offer from somebody,” said William N. Smith, an analyst with the Smith Barney, Harris Upham investment firm in New York.
Industry analysts say the takeover battle for Federated has boiled down to whether Campeau can prove that it can finance a deal for Federated before the retailer has time to line up a rigorous defense plan.
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