The Business Week Ahead : SOUTHLAND

Federated to Consider Store Offers: In the wake of a regulator’s decision allowing it to proceed with plans to acquire Los Angeles-based Broadway Stores Inc., Federated Department Stores Inc. this week is expected to step up efforts to sell some of Broadway’s California stores. Cincinnati-based Federated plans to sell some of those stores and convert the others into Bullock’s, Macy’s and Bloomingdale’s. That can proceed now that the Federal Trade Commission decided late last week it will not oppose the merger. Analysts expect Federated to sell 30 to 40 of the 82 stores operated by Broadway Stores--including many in Southern California. Federated will likely sell poorer-performing stores as well as some Broadway Stores close to existing Federated locations. Analysts say J.C. Penney, Arkansas-based Dillard Department Stores and May Department Stores--operator of the Robinsons-May chain--are among those interested in some Broadway sites. Federated will seriously consider offers from Penney, analysts say. However, it might be reluctant to sell any stores to the other two chains because May is a major competitor and Federated wouldn’t want to help Dillard enter California.