By  on January 26, 2005

NEW YORK — Panic might not be the right word, but “on edge” is certainly an apt description of the mental state of vendors given the possibility of a merger between Federated Department Stores and May Department Stores.

The retailers were said to be in talks last week, discussions that have taken place several times before, but might be more successful given the recent departure of May’s chief executive officer, Gene Kahn.

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