Allied urged its holders to reject Campeau’s bid.

In a brief statement, Allied said its board of directors had determined that Campeau Corp.’s bid was not in the best interests of Allied or its shareholders. Campeau is offering $1.74 billion to gain a controlling interest in the huge retailer and said it was weighing alternatives such as the purchase of other businesses or the sale of assets. Allied Stores is the 12th-largest non-food retailer in the United States and operates such stores as Brooks Bros. and Bonwit Teller.