WEDDING SURPRISE: Terry Lundgren completed another merger over the weekend, and practically no one knew it was in the works. The chairman, president and chief executive of Federated Department Stores invited about 200 family members, Federated executives and friends, including Mayor Michael Bloomberg, Kenneth Cole, Donald Trump and Vera Wang to the Frick Museum on Saturday for what he told everyone would be his engagement party with fiancée Tina Stephan. Around 8 p.m., Lundgren's two daughters, Jessica and Tracey, introduced a video to the audience and that's when the surprise broke. Lundgren appeared with his wife in a bridal gown and announced he had gotten married that afternoon. The couple then appeared to celebrate with their guests.

Earlier that day, Lundgren staged a preparty for 20 at his apartment, and had a bus waiting outside to shuttle them to the Our Lady of Good Counsel church on the Upper East Side. "They were in shock," Lundgren said. "We kept it very tight."

Lundgren also said he and Wang designed his wife's gown, and he kept his wife blindfolded through all the fittings. "Vera said it was the first time the groom saw a bridal gown before the bride," Lundgren said.

CLOTHES CALL: Although a self-professed Dior Homme addict, guess what Karl Lagerfeld is wearing these days? The Karl Lagerfeld label. "It's fun to wear something else. The clothes are modern; they have the right touch," he said about his forthcoming lower-priced contemporary label, a new venture under parent Tommy Hilfiger Corp. The designer just received prototypes from the capsule summer collection launching at Neiman Marcus, including jeans and jackets, some made of a fabric permanently crinkled thanks to metal threads. "I have them on my back all the time," he said. Meanwhile, Lagerfeld is unruffled by last week's blockbuster news that Hilfiger is for sale, with a prospectus circulating. "For me, it's not a problem, especially because it's still the beginning [of our association]," he said Friday. Besides, he added, "people who might want to buy the business wouldn't want to destroy it. I believe in success. As long as I can keep my team in America because it's working perfectly." Not that Lagerfeld plans to only wear his own designs. Besides Dior, his other favorite brands of the moment include Libertine, Hussein Chalayan, Thom Browne and Mastermind, a Japanese maker of skinny jeans.EMME TO QVC: Plus-size model Emme is the latest designer heading to QVC to hawk her collection. In October, she will hit the airwaves selling the e by Emme collection, which includes a houndstooth jacket, a jewel-encrusted hip-length top, "Emiracle" wrap sweater, and the "Emazing" jersey pant.

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