Icahn Shops for More Federated Shares

Carl Icahn has a new target in Corporate America. This time, he's buying shares of Federated Department Stores (FD).

The iconic retailer disclosed Wednesday that Icahn, a billionaire investor who has recently lobbied for change at Time Warner (tWX) and ImClone (IMCL), said he plans to boost his stake in the company by $113.4 million to $500 million worth of shares.

He already owns 2.01 million Federated shares valued at around $93.5 million. The company has about 553.2 million shares outstanding.

The shares recently were trading up $1.47, or 3.5%, to $43.09, on more than double their average volume.

"We're glad Mr. Icahn sees value in our company and is increasing his investment," said Federated in a press release. "While our stock hit an all-time high four times in the past three weeks, we continue to see significant opportunity ahead as we maximize the Macy's and Bloomingdale's brands nationwide."

Federated swallowed its chief competitor, May Department Stores, last year, and it's in the process of merging the acquired company into its operations. Earlier this month, it converted 400 former May stores into its venerated Macy's brand.

Icahn is seeking clearance for his acquisition under the Hart-Scott-Rodino Antitrust Improvements Act, which typically signals that an investor is seeking control or influence at a company.

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