Seeking Alpha

Merger premium evaporating for Dollar General and Family Dollar

  • Shares of Family Dollar (FDO -2.4%) and Dollar General (DG -0.8%) slip again with the merger premium for the stocks continuing to evaporate.
  • Though the analyst community is divided on the impact of the resignation of Dollar General CEO Richard Dreiling, Wells Fargo is making a strong case that Dollar General is digging in its heels to go it alone.
Comments (3)
  • Patent News
    , contributor
    Comments (1312) | Send Message
     
    what proof does wells fargo have that DG will go it alone? inside information?
    30 Jun, 10:18 AM Reply Like
  • Ron Thomas
    , contributor
    Comments (12) | Send Message
     
    My note about FDO is the only one I have seen on SA that looks at the evolution of the competitive environment, which is the foundation for any knowledge of where the company would go in the medium to longer term.
    30 Jun, 10:24 AM Reply Like
  • redhat63
    , contributor
    Comments (39) | Send Message
     
    My take as an older white collar professional is that the CEO retiring indicates that there will be a merger down the road. I am 51 years old, have been doing what I am doing for a long time, things are changing, younger people coming in...had enough, but need my job, you know the drill. If I could retire, man, I sure would, enough is enough. My presumption is, Dreiling has achieved the type of financial independence that is allowing him to say, "enough is enough", I used to enjoy coming to work, but not any more. I need to deal with Ihcan now too??? Just my take as a "dinosaur"...

     

    Or...he may be part of the team to take the company private.

     

    There are many ways to play this...
    30 Jun, 10:39 PM Reply Like
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