NEW YORK — Hostile bidder Campeau Corp. swooped into the market Friday, purchased 25.8 million shares of Allied Stores and announced that it had amassed majority control of the high-fashion retailer. But a federal judge quickly blocked the purchase temporarily.
At the urging of Allied, U.S. District Judge Pierre N. Leval issued a temporary restraining order against Campeau's purchase, at least until a hearing next Friday.
The surprise move came Friday morning, when Campeau announced the purchase through Jefferies & Co. of more than 48% of Allied Stores' stock for $67 a share, or $1.73 billion.
The stake, plus the estimated 4% of Allied stock that Campeau already owns, would give Campeau control of the huge retailer and derail a friendly offer for Allied by Ohio-based DeBartolo, the nation's largest shopping-mall developer.