Family Dollar rejects Dollar General's latest offer


Citing antitrust concerns, the Family Dollar (NYSE:FDO) board rejects Dollar General's (NYSE:DG) latest bid, which came at a 7.4% premium to Dollar Tree's (NASDAQ:DLTR) buyout price.

"There is a very real and material risk that the transaction proposed by Dollar General would fail to close, after a lengthy and disruptive review process," says Family Dollar boss Howard Levine.

Family Dollar and Dollar Tree amend their merger agreement, with Dollar Tree committing to divest as many stores as necessary to receive antitrust clearance. The two also accelerate their expectations for closing the deal to as early as the end of November.

FDO -0.8%, DG -1.4%, DLTR -1.4% premarket

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Comments (2)
  • deaverb
    , contributor
    Comments (153) | Send Message
     
    Three excellent companies becoming two. It is likely they will become 1 down the road with anti trust approval because as 1 they would be a powerful competitor to Walmart.
    5 Sep 2014, 09:22 AM Reply Like
  • Travis Brown
    , contributor
    Comments (692) | Send Message
     
    $DG had a November deadline to buy up shares and do a hostile takeover. I'm thinking that happens next.
    5 Sep 2014, 09:46 AM Reply Like
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