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Icahn demands immediate sale of Family Dollar

  • "We believe there would be significant interest from strategic and financial buyers who could recognize massive synergies from an acquisition of the company," says Carl Icahn in a letter to Family Dollar (FDO) Chairman and CEO Howard Levine. "Consolidation in this space is inevitable and we believe that now is not the time for continued passivity."
  • Icahn adds he would like to work "collaboratively" with management, but, if not, will be commencing a consent solicitation to remove the board.
  • Shares +2.7% AH
  • Previous coverage of Icahn and Family Dollar
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Comments (17)
  • PChan444
    , contributor
    Comments (514) | Send Message
     
    Icahn is an ugly punk
    19 Jun 2014, 04:22 PM Reply Like
  • Econ Student
    , contributor
    Comments (237) | Send Message
     
    We can always rely on that guy to make outrageous claims that I don't even think he believes hiself.
    19 Jun 2014, 05:25 PM Reply Like
  • 911Slade
    , contributor
    Comments (98) | Send Message
     
    What does that have to do with him being a great agitator on the long side in many overly complacent companies?

     

    Management at most companies today are over-compensated slugs that are primarily out for their own good.
    19 Jun 2014, 06:11 PM Reply Like
  • pmiller100
    , contributor
    Comments (359) | Send Message
     
    Overly complacent? Should a company try to slowly grow by selling more goods/services than previous years or should a company forget all that boring stuff and just try to M&A its central leadership and biggest shareholders to quick riches?

     

    We know the Danny DeVito answer to that question, but I have to think New England Wire and Cable had a sound argument as well.
    20 Jun 2014, 08:38 AM Reply Like
  • redhat63
    , contributor
    Comments (107) | Send Message
     
    I am in the market to make money. I am long FDO and I have no problem with Icahn. I hope he succeeds with the Paypal spin off too.
    19 Jun 2014, 05:31 PM Reply Like
  • Econ Student
    , contributor
    Comments (237) | Send Message
     
    The Paypal spin off makes sense. Nobody's going to buy Family Dollar. They'd be overpaying. There's a Dollar General (DG) and a Family Dollar in my town. The DG always has 10 cars or so. The Family Dollar is lucky to have 3. (DG) is more undervalued too.
    19 Jun 2014, 08:38 PM Reply Like
  • 50 cent it is
    , contributor
    Comments (1461) | Send Message
     
    Why didn't he stamp his foot at herbalife and get something going
    They actually need some help
    19 Jun 2014, 06:19 PM Reply Like
  • Stinkytwerk
    , contributor
    Comment (1) | Send Message
     
    Big Lots and Family Dollar think shifting the store items around the store are going to spur sales. Only thing that happened was confusing long standing customers. Family Dollar no longer carries REACH tooth brushes, there tooth brush display is 25% of what it used to be. What happened?
    20 Jun 2014, 03:48 AM Reply Like
  • 50 cent it is
    , contributor
    Comments (1461) | Send Message
     
    Stinkey
    Didn't they shift the deck chairs around on the titanic before it sank?
    Some bright MBA probably thought confusing the customer was a good thing.
    20 Jun 2014, 08:26 AM Reply Like
  • financeminister
    , contributor
    Comments (1028) | Send Message
     
    I bought FDO in April expecting to hold this as part of my DGI portfolio. Now that's it's already appreciated by around ~18%, should I just sell and look for other fish in the sea? Will there be more upside if there is more info a possible deal coming out and will the price drop significantly if there is no sale?

     

    The 30% capital gains tax always makes me think twice.
    20 Jun 2014, 08:29 AM Reply Like
  • 50 cent it is
    , contributor
    Comments (1461) | Send Message
     
    30 percent capital gains tax?
    Do you live in canada?
    20 Jun 2014, 08:34 AM Reply Like
  • financeminister
    , contributor
    Comments (1028) | Send Message
     
    Nope... down here in Texas. Isn't the short term capital gains tax equal to 30%? I'm just hesitant to sell my long position that I started in April this year short and recieve a 30% capital gains tax bill so trynig to figure out what the best course of action should be at this point. I guess I have a feeling the back of my head that the buzz will fizzle out and the share price will come back to where it started.
    20 Jun 2014, 10:26 AM Reply Like
  • Econ Student
    , contributor
    Comments (237) | Send Message
     
    There's nothing wrong with taking some profits. Just sell out your original position and let the free shares ride. You won't have to pay taxes that way. Maybe Icahn can get something from them maybe a good dividend hike or a buyback.
    20 Jun 2014, 02:36 PM Reply Like
  • 50 cent it is
    , contributor
    Comments (1461) | Send Message
     
    Financeminister
    With all due respect to your title, I think the top capital gains rate is 20 percent.
    I just saved ou some money
    20 Jun 2014, 04:33 PM Reply Like
  • 911Slade
    , contributor
    Comments (98) | Send Message
     
    He stated that it is a STCG -- not a LTCG -- so it is subject to tax at the top marginal rate (39.6% plus the net investment income tax depending on his income; no state income tax in TX).
    20 Jun 2014, 05:31 PM Reply Like
  • 50 cent it is
    , contributor
    Comments (1461) | Send Message
     
    911
    You are correct
    20 Jun 2014, 10:12 PM Reply Like
  • 50 cent it is
    , contributor
    Comments (1461) | Send Message
     
    911 slide
    I agree that we need activists and to shake up complacent management(and boards) and Icahn is one of the more effective ones.
    Having said that,he is still a pig
    21 Jun 2014, 04:16 PM Reply Like
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