Majority of Allied Shares Tendered, Campeau Claims

Campeau Corp., the Canadian firm headed by flamboyant developer Robert Campeau, remained hot on the trail Sunday in its attempt to take over one of the largest retail chains in the United States.

A spokesman said Campeau had received two-thirds of Allied Stores Corp. shares, or 34.5 million, in its $66-a-share tender offer for the company.

“It is clear shareholders overwhelmingly tendered to the Campeau bid and want to take advantage of the Campeau offer,” the spokesman added.

Allied late Friday was granted a temporary restraining order by a federal court judge stopping Campeau from carrying through its offer until a court hearing October 20.

Allied, which has its own merger agreement with Edward J. DeBartolo Corp. at $67 per share, the same day adopted a shareholder rights plan that would make it more difficult and more costly for the company to be acquired in a hostile takeover.

“We view the last-minute poison-pill tactic by the Allied board as a serious breach of the board’s fiduciary responsibility to serve the best interest of Allied’s shareholders,” the Campeau spokesman said.

Allied’s rights plan would be triggered when another party controls 50% of the company’s stock unless it was acquired in a tender offer at $67 per share.

Campeau has offered $66 per share for about 80% of Allied shares.

Allied, one of the nation’s largest retailers, has stores in 46 states, the District of Columbia and Japan. They include such well-known chains as Bonwit Teller, Brooks Bros., Ann Taylor, Jordan Marsh and Garfinckel’s.

Campeau, a self-made Canadian developer, launched his bid for Allied on September 4 by offering $58 a share. When that offer was rejected, he raised it to $66 a share, but Allied was known to have still opposed the offer.