Might Federated hook up with May?

In what would result in a retail megamerger, The Wall Street Journal on March 11 reported that Federated Department Stores (NYSE:FD) and May Department Stores Co. (NYSE:MAY) are discussing a possible merger.

Cincinnati-based Federated includes the Bloomingdale’s catalog and Macys.com Website, as well as retail chains such as Rich’s and Lazarus; the company is now in the process of trying to unload its Fingerhut catalog business. St. Louis-based May Department Stores includes retailers Lord & Taylor, Foley’s, Filene’s, Strawbridge’s, and Hecht’s.

The two companies accounted for nearly $30 billion in sales last year: Federated had sales of $15.6 billion while May reported sales of $14.2 billion. Not surprisingly, Federated spokesperson Carol Sanger declined to comment on the news reports.