Company News: Federated hopes stock will trade under ‘M’ symbol

Federated Department Stores Inc. shares will trade under the ticker symbol “M” if shareholders approve changing the company’s name to Macy’s Inc., the company said Wednesday.

In changing its symbol to “M” from “FD” — which the retailer has traded under since 1992 — Federated will join an elite group of 15 companies represented by a single letter on the New York Stock Exchange.

The change is before shareholders at Federated’s May 18 annual meeting, and the stock symbol change would be effective June 1. The company opted to shorten its proposed new name from the previously announced Macy’s Group Inc.

The moves are part of Federated’s strategy to focus on building Macy’s as a national brand.

“Macy’s represents about 90 percent of the revenue of our corporation, and this is another important opportunity to reinforce the recent expansion of the Macy’s brand,” Terry J. Lundgren, chairman, president and chief executive, said in a statement.

“General Motors Acceptance Corp. said Wednesday that it intends to “sharply” cut the volume of subprime mortgages originated by its Residential Capital LLC unit for 2007, amid continued pressure from housing prices and the subprime mortgage market.

GMAC, which used to be wholly owned by General Motors Corp., said in a presentation for investors that pressures on ResCap will constrain GMAC results in the near term.

The financing company reiterated that its highest priority is to implement changes at ResCap, including maximizing earnings from other ResCap businesses, according to the presentation, which was filed with the Securities and Exchange Commission.

“Texas state regulators on Wednesday recommended $210 million in fines against TXU Corp. after an investigation accused the state’s largest utility of manipulating the electric market to its own benefit.

The alleged market abuse was observed between June and September of 2005, according to the Public Utility Commission. It wound up costing consumers $70 million and earned the utility $20 million in extra profits, according to an outside expert whose report was released by state regulators two weeks ago.

TXU, the largest power generator in Texas, sold power to the market at inflated prices and caused electricity prices to rise 15.5 percent during the summer stretch, the PUC said.