Dollar General goes antagonistic in bid for Family Dollar

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Dollar General Corp. is going antagonistic with a $9.1-billion bid for Family Dollar Stores Inc. after a opposition regularly deserted prior offers.

The bonus sequence has commenced an open charity to Family Dollar shareholders for $80 per share in cash. That offer was deserted final week by Family Dollar’s board, that has already supposed a understanding with another discounter, Dollar Tree Inc.

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Family Dollar, formed in Matthews, N.C., has uttered concerns about Dollar General’s understanding flitting antitrust review. In response, Dollar General has pronounced that it is peaceful to deprive as many as 1,500 stores if a Federal Trade Commission requires it. The association also is charity to compensate a $500-million retreat dissection price if antitrust hurdles get in a way.

Dollar General’s offer creates for a constrained financial argument, Sterne Agee researcher Chuck Grom wrote. He expects a Goodlettsville, Tenn., association to eventually win a dollar store war.

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Family Dollar has been exploring a sale amid substantial financial highlight and it has sealed some of a stores and cut prices in an try to boost feet traffic. In June, romantic financier Carl Icahn urged a association to put itself adult for sale.

Family Dollar supposed an $8.5-billion offer from Dollar Tree a month later. The competing bid includes $59.60 in money and a homogeneous of $14.90 in shares of Dollar Tree for a sum of $74.50 for any share held. Family Dollar has corroborated a bid, observant regulators are reduction expected to interfere.

There are some-more similarities, however, between Family Dollar and Dollar General, that batch their shelves with products that sell for a operation of prices. Everything sole during Dollar Tree costs a buck.

Appealing directly to Family Dollar shareholders, Dollar General Chairman and Chief Executive Rick Dreiling pronounced that a sale to his association would yield them with “immediate and certain liquidity for their shares.”

“By holding this step, we are providing all Family Dollar shareholders a voice in this process, and we titillate them to proposal into the offer,” Dreiling pronounced in a statement.

Copyright © 2014, Los Angeles Times

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