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Dollar General takes FDO offer directly to shareholders

With offers to buy Family Dollar twice rejected, Dollar General on Wednesday went directly to its rival's shareholders, commencing an $80 per share tender offer.

Jon Springer, Executive Editor

September 10, 2014

2 Min Read
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With offers to buy Family Dollar twice rejected, Dollar General on Wednesday went directly to its rival's shareholders, commencing an $80 per share tender offer.

Family Dollar said its board will review the unsolicited tender offer and respond via SEC filing no later than Sept. 23, and advised shareholders to take no action.

Dollar General said the offer, which values Family Dollar at $9.1 billion, is superior to the $74.50-per-share offer from Dollar Tree that Family Dollar's management and board have said they would continue to pursue despite Dollar General's interest. Family Dollar's board rejected two previous offers from Dollar General, saying the deal it agreed to with Dollar Tree in August presents considerably less antitrust risk.

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Dollar Genenal said Wednesday's tender offer is being made on similar terms as its revised Sept. 2 bid, including a willingness to divest up to 1,500 stores if ordered to by federal regulators and a $500 million reverse-breakup fee. Family Dollar maintained those measures were inadequate.

The company had no immediate response to Wednesday's tender offer.

 

About the Author

Jon Springer

Executive Editor

Jon Springer is executive editor of Winsight Grocery Business with responsibility for leading its digital news team. Jon has more than 20 years of experience covering consumer business and retail in New York, including more than 14 years at the Retail/Financial desk at Supermarket News. His previous experience includes covering consumer markets for KPMG’s Insiders; the U.S. beverage industry for Beverage Spectrum; and he was a Senior Editor covering commercial real estate and retail for the International Council of Shopping Centers. Jon began his career as a sports reporter and features editor for the Cecil Whig, a daily newspaper in Elkton, Md. Jon is also the author of two books on baseball. He has a Bachelor of Arts degree in English-Journalism from the University of Delaware. He lives in Brooklyn, N.Y. with his family.

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