FEDERATED <FDS> TO BUY <ALLIED STORES CORP> UNIT
Federated Department Stores
Inc and Allied Stores, currently wholly owned by Robert
Campeau, said they have entered into a definitive stock
purchase agreement for the sale of Allied's Blocks Inc unit to
Federated for 55 mln dlrs cash.
    The price is subject to certain cloising adjustments, the
companies said.
    Allied said it is selling Blocks, which operates 10
department stores under that name in Indiana and Ohio, and two
Michigan stores under the Herpolsheimer's name, under its
previously announced restructuring program.
    The transaction is expected to close in June of this year
when the twelve Blocks stores will be operated as an entity of
Federated's Cincinnati-based Lazarus Department store division,
the companies said.
    The companies added that the deal is subject to customary
closing conditions, including expiration of the waiting period
under the Hart-Scott-Rodino Antitrust Improvement Act.
 Reuter
