Dollar General Not Giving Up on Family Dollar Acquisition
The announcement earlier Friday morning that Family Dollar had rejected Dollar General’s latest offer does not appear to have quelled Dollar General’s ardor at all.
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The announcement earlier Friday morning that Family Dollar Stores Inc. (NYSE: FDO) had rejected Dollar General Corp.’s (NYSE: DG) latest offer does not appear to have quelled Dollar General’s ardor at all.
In a terse press release just after the lunch hour, Dollar General said:
In response to the decision by the Board of Directors of Family Dollar Stores, Inc. (FDO) to reject Dollar General’s enhanced all-cash proposal to acquire all outstanding shares of Family Dollar for $80.00 per share, Dollar General Corporation (DG) today stated that it remains committed to acquiring Family Dollar and is currently evaluating its next steps.
Except for a shout-out to its financial adviser and its lawyers, that was all Dollar General had to say. The good news for Family Dollar is that it gave the shares a bit of a bump from the intra-day low of $78.75 to around $79.00.
Dollar General has promised (threatened?) to take its latest offer directly to shareholders if Family Dollar rejected it. We shall see how that works out. The company’s chairman/CEO (and son of the company’s founder) and Nelson Peltz’s Trian Fund Management together own about 16% of Family Dollar’s stock.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
