According to a report in The Wall Street Journal, Terry Lundgren, president of Federated Department Stores (Cincinnati), will soon become ceo as well. According to Federated, “there is absolutely no truth to the rumor.”
The paper reported that Lundgren, who is also Federated's chief merchandising officer, would step up over the next couple of months and James Zimmerman, currently ceo, would remain as chairman for a couple of years. Wall Street Journal cited a person “familiar” with the matter.
The appointment would come as preliminary merger talks were broken off between Federated and May Department Stores (St. Louis). The article speculated that the merger discussions were terminated at least in part because it would leave no room for Lundgren at the top.
But Federated immediately countered with a statement. “There is absolutely no truth to the Wall Street Journal story about Terry Lundgren being named ceo,” said Federated spokesperson Carol Sanger. The company declined to comment on the May Co. merger issue.