Deikel keeps his offer for Fingerhut open

ST. CLOUD (AP) -- Former Fingerhut chief executive Ted Deikel said Friday he'll stand by with his offer to buy the catalog retailer from Federated Department Stores Inc.

After Federated two weeks ago signed a non-binding agreement to sell Fingerhut to a company run by Wayzata businessman Peter Lytle, Deikel presented Federated with a second offer. Federated initially gave Lytle until Friday to come up with financing, and Deikel likewise set Friday as deadline for consideration of his offer.

But on Thursday, Federated said it would give Lytle more time. And Deikel responded Friday by saying he'll keep his offer in place.

Deikel said the "date was picked because we thought that other offer would either be consummated or gone by then. Our (goal) is to make sure the company continues one way or the other."

Deikel's group includes St. Cloud native Tom Petters and the Cargill Value Investment Group. On Friday, Deikel also said former Fingerhut president John Buck also has joined in.

Buck recently replaced Deikel as board chairman for Medica and this week was named interim chief executive officer of the Minnetonka-based health plan.

Lytle said his company, Business Development Group Acquisitions Inc., is continuing to review business records, contractual and environmental issues. He said he remains confident it can complete the transaction.