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Jan. 22, 2015, 9:38 AM
- Shareholders with Family Dollar (NYSE:FDO) have approved the merger offer from Dollar Tree (DLTR +1.8%) as expected.
- 74% of shareholders approved the merger of the discounters.
- FDO trades at $76.20 vs. the buyout price of $74.50.
- Shares of Dollar General (NYSE:DG) are taking the news well, up 2.4% in early trading.
Jan. 8, 2015, 7:21 AM
- Family Dollar (NYSE:FDO) reports comparable-store sales fell 0.4% in FQ1 as the retailer shifted to an "everyday" pricing strategy.
- Gross profit rate -90 bps to 33.4% on a higher mix of food and tobacco sales impacted results.
- Operating profit -170 bps to 3.1%.
- SG&A expense rate +80 bps to 30.3%.
- Merchandise inventory +4.1% to $1.71B.
- Capex spending down 8% on fewer store openings.
- FDO -1.0% premarket.
Nov. 19, 2014, 5:13 AM
- Dollar General (NYSE:DG) may have to divest more than 4,000 stores, more than double the 1,500 stores it said it was willing to sell, if it wants to gain regulatory approval to buy Family Dollar (NYSE:FDO), reports The New York Post.
- Getting the FTC to change its mind could take months, but rival Dollar Tree (NASDAQ:DLTR) wants a vote on its proposed Family Dollar merger by Dec. 31.
- Without the time to explain its case to the FTC, Dollar General could be forced to either raise its bid or live with the added number of divestitures.
- DG -1.8% premarket
Oct. 10, 2014, 11:09 AM
- There was frustrated tone from Family Dollar (FDO -0.4%) after the company barely managed a positive comp in FQ4 despite a healthy round of promotions.
- The discounter's gross margin rate fell 170 bps to 32.95% for the quarter and operating profit slid 469 bps to 1.53%.
- Management pointed to merchandise mark-ups and mix (tobacco, frozen foods) as margin depressors.
- Macroeconomic factors were also cited. CEO Howard Levine put it bluntly: "Our core customer is still struggling."
- Execs were silent on the pending offers from Dollar Tree and Dollar General.
- Earnings call transcript
Sep. 5, 2014, 8:55 AM
- 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
Sep. 2, 2014, 9:07 AM
- Family Dollar (NYSE:FDO) indicates it will review the updated offer from Dollar General (NYSE:DG) with advisers before it will offer a recommendation to shareholders.
- The Dollar General bid commands a 7.4% premium over what discounter peer Dollar Tree (NASDAQ:DLTR) offered up and includes a commitment to shed up to 1.5K stores.
- Retail analysts think the ample competition in the supercenter/superstore/supermarket space will keep regulators largely at bay as they evaluate the potential combination of the two dollar store chains.
- FDO +0.8% to $80.45, a shade above the $80 bid price from Dollar General, in an indication that some investors are betting yet another offer could come down the road.
Aug. 21, 2014, 8:14 AM
- Shares of Family Dollar (NYSE:FDO) are lower in early trading after the company confirms reports that is has rejected a $78.50-per-share offer from Dollar General.
- The company says it has antitrust concerns about the combination.
- The board has reaffirmed that it supports the company merging with Dollar Tree (NASDAQ:DLTR).
- Premarket: Dollar Tree -1.8%, Family Dollar -0.5%, Dollar General (NYSE:DG) -1.1%.
Aug. 18, 2014, 9:11 AM
Aug. 18, 2014, 8:34 AM
- Dollar General (NYSE:DG) is a clear favorite in the race for Family Dollar (NYSE:FDO), according to retail analysts.
- The company forecasts annual run-rate synergies almost twice the amount Dollar Tree (NASDAQ:DLTR) forecast on top of the extra $4 per share it's willing to pony up.
- FDO +4.85% to $79.75.
Aug. 18, 2014, 7:06 AM
- A combination of Dollar General (NYSE:DG) and Family Dollar (NYSE:FDO) would create a discounting giant with close to 20K stores and sales of over $28B per year.
- The retailers estimate the merger would create synergies of $550M-$600M annually three years after the deal closes.
- It's also estimated that the new company would return to investment grade approximately three years after closing.
- Premarket: DG +10.4% to $63.45, Dollar Tree (NASDAQ:DLTR) -1.4% to $54.85, FDO still to open.
Aug. 5, 2014, 12:18 PM
- Dollar General (DG +3.4%) is in the mix now to make a play for Family Dollar (NYSE:FDO), according to a breaking Bloomberg report.
- Sources indicate the company is talking to bankers about how to best finance an offer.
- Family Dollar has traded above Dollar Tree's (DLTR -1.7%) $74.50-per-share offer since the purchase agreement was announced, and after today's development, is up another 2.6% to $77.68.
Jul. 28, 2014, 12:45 PM
Jul. 28, 2014, 9:12 AM
Jul. 10, 2014, 7:26 AM
- Family Dollar (FDO) says it plans to close 370 under-performing stores by the end of this fiscal year.
- In FY14, the company will expand its space committed to coolers.
- A multi-year rollout of beer and wine products is also on tap.
- FDO -0.5% premarket
Jun. 27, 2014, 10:18 AM
- Dollar General (DG -6%) CEO Rick Dreiling, 60, plans to retire either on May 30, 2015, or upon the appointment of a successor. An "internal and external search" has been launched to find Dreiling's replacement.
- Dreiling has been DG's CEO since Jan. '08. His retirement plans come as Carl Icahn pushes for rival Family Dollar (FDO -3.1%) to pursue a merger, possibly with DG.
- Investors seem to be betting the uncertainty surrounding DG's CEO transition lowers the near-term odds of a deal.
Jun. 19, 2014, 4:20 PM
- "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
Family Dollar Stores Inc provides consumers with a selection of competitively priced merchandise in convenient neighbourhood stores. Its merchandise assortment includes consumables, home products, apparel accessories, seasonal and electronics.
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