Allied Stores rejected Campeau Corp.’s bid.

The retailer said its board determined that it wasn’t in the best interest of Allied’s shareholders to accept the invitation of Campeau, a Toronto-based real estate developer, to negotiate a merger. As reported, Campeau proposed to buy Allied in a cash-and-securities transaction valued at about $2.74 billion. The rejection did not surprise analysts, who view the bid as substantially too low. Campeau had no comment on Allied’s announcement.