In Brief: Broadway Stores
This article was originally published in The Rose Sheet
Executive Summary
Broadway Stores: Agrees to merger offer from Federated Department Stores on Aug. 14. The deal is expected to close by the end of October. Under the agreement, shareholders of the 46.9 mil. outstanding Broadway shares will receive .27 shares of Federated stock for each share of Broadway. Federated said it plans to retain and operate "a significant number" of the Broadway stores "divesting the remainder over the next year or so." Most of the retained Broadway stores will be converted into Macy's/Bullock's or Bloomingdale's beginning in 1996. Federated pointed out that the merger paves the way for Bloomingdale's entry into California. Federated says it expects to spend about $525 mil. in converting and remodeling the stores between 1996 and 1999. Broadway shareholders will vote on the merger in October. Zell/Chilmark L.P., which owns a 54% stake in Broadway, supports the merger...