FDS intends split of common stock on 2-for-1 basis

29 Mar '06

3 min read

Board of Directors of nation's leading retailer, Federated Department Stores Inc (FDS) said it intends to split the company's common stock on a two-for-one basis if shareholders approve an increase in the number of authorized shares of Federated common stock.

The intended stock split would be affected through a stock dividend entitling each shareholder of record to receive one additional share of common stock for every one share owned.

The company will seek shareholder approval for an increase in the number of authorized shares of Federated common stock. A vote to increase the number of common shares authorized from 500 million to 1 billion will be conducted in conjunction with Federated's Annual Meeting on May 19, 2006.

If shareholders vote in favor of the increased authorization, the Board of Directors plans to approve the stock split, and additional shares issued as a result of the stock dividend would be distributed after close of trading on June 9, 2006, to shareholders of record on May 26, 2006.

Following the approval of the stock split, shareholders would not need to exchange existing stock certificates and would receive a Direct Registration Statement at the time of the split, reflecting the newly issued shares. Trading would begin on a split-adjusted basis on June 12, 2006.

This action would represent the first stock split since Federated was listed in its current form on the New York Stock Exchange in February 1992.

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