Billionaire Carl Icahn has notified Federated Department Stores Inc. that he plans to apply for clearance to acquire $113.4 million to $500 million of additional shares, according to the retailer, which owns Macy's and Bloomingdale's department stores. Is Federated chief Terry Lundgren doomed?
Icahn currently owns 2.01 million Federated shares valued at roughly $93.5 million, or about a 0.36% stake. Icahn plans to file under the Hart-Scott-Rodino Antitrust Improvements Act for clearance, the company noted.
"We're glad Mr. Icahn sees value in our company and is increasing his investment," Lundgren, chairman, president and CEO of the Cincinnati-based retailer, said in a statement.
It seems Lundgren's not familiar with Icahn's history of proxy fights when portfolio companies hit trouble. For examples, look no further than ImClone, Time Warner and others. And Federated is no stranger to trouble as its fortunes regularly rise and fall depending upon the strength of the economy. Who knows how long Icahn's and Lundgren's honeymoon will last. —Matthew Wurtzel
See press release from Federated Department Stores
See related story about Icahn-Imclone from The Deal
See related story about Icahn-Time Warner from The Deal
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