The vote on the May/Federated merger is today. The outcome is a foregone conclusion: May Company will be merged with Federated under the Federated banner.
The May Company has been a valuable business citizen of the City of St. Louis, and one of our most valued business partners for many years. We are very sorry to lose the May Company.
But, with change can come opportunity.
According to the Federated/May Merger Agreement (Section 5.17—Additional Agreements: St. Louis Operations and Community Involvement): “Federated will maintain in St. Louis, Missouri a major divisional headquarters, as well as certain regional corporate support functions.”
I am confident that we can work well with Federated towards implementing the intent of the merger agreement in a manner that results in the best possible outcome for the City and the State.
Governor Matt Blunt and I are meeting with Federated officials to discuss how the divisional headquarters and regional corporate support functions will be structured. Both the state and the City have received useful and timely advice from re-structuring experts Alvarez & Marsal on how to frame our discussions and argue our points. The discussions will continue all summer.
We both look forward to working with Federated to make it a strong retail and employment presence in the City of St. Louis and in Missouri.