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. 28, 2014, 8:19 AM| Comment!
Aug. 26, 2014, 1:48 PM
- Retail sales were strong across the sector, according to ICSC.
- Wholesale clubs (COST, PSMT, WMT), dollar stores (DLTR, DG, FDO), and apparel sellers (AAP, AEO, ANF, JCP, JNY, JWN, KSS, LB, M, URBN, PSUN, BKE, WTSL, GPS) all tracked strong for the week.
- Sales for the month are forecast to rise 4% to 5%, compared to last year's 3.6% rise.
Aug. 22, 2014, 11:42 AM
- Family Dollar (FDO +0.4%) is open to taking Dollar General's (DG +0.5%) $9B offer for the company if it agrees to divest enough stores in the combination to appease regulators, sources tell Bloomberg.
- The company doesn't think Dollar General's current proposal to shed 700 stores goes far enough.
- Shares of Dollar Tree (DLTR +0.1%) are on watch as the drama unfolds.
Aug. 21, 2014, 1:58 PM| Comment!
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. 21, 2014, 4:35 AM
- Dollar General (NYSE:DG) states that Family Dollar (NYSE:FDO) CEO Howard Levine, ignored multiple requests to pursue a merger even prior to Dollar Tree's (NASDAQ:DLTR) $74.50-a-share offer.
- Rick Dreiling, CEO of Dollar General claims that Levine shrugged off the requests out of fear he would be forced to step down as CEO.
- Earlier this week, Family Dollar's board announced that it would review Dollar General's $78.50-a-share offer, but continued to recommend shareholders vote for its $74.50-a-share deal with Dollar Tree.
Aug. 19, 2014, 9:40 AM
- Dollar Tree (DLTR +1%) might be tempted to walk away from the battle for Family Dollar (FDO +0.2%) with a $305M breakup fee sitting as a consolation prize.
- Analysts note the retail chain could use the money to buy many of the stores that regulators will force Dollar General to divest if it swallows up Family Dollar.
- Yesterday, sources at Wal-Mart (WMT -0.2%) indicated the company was likely to pass on making an offer of its own to Family Dollar.
Aug. 18, 2014, 3:02 PM
- Family Dollar (FDO +5%) confirms receipt of an offer from Dollar General (DG +11.9%) at $78.50 per share.
- The company says it remains subject to the merger agreement with Dollar Tree and that the board won't back off its recommendation of that deal until it has reviewed the Dollar General offer.
- Shares of Family Dollar are trading 1.80% above the Dollar Tree bid, indicating at least some investors see more action to come.
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. 18, 2014, 6:59 AM
Aug. 14, 2014, 1:01 PM
- The dollar store group (DLTR, FDO, DG, BIG) and select grocery store chains (KR, SWY, SVU) are slight out-performers on the day after Wal-Mart's (WMT +0.1%) Q2 report indicates it lost some market share in the U.S.
- Edward D. Jones analyst Brian Yarborough attributes the limp sales growth for Wal-Mart in the U.S. to the retailer's inability to nab the quick "milk and bread" runs by consumers due to the massive size of its stores.
- That line of thought is consistent with the stronger growth numbers put up lately by convenience store operators such as Circle K (OTCPK:ANCUF), 7-11, Pantry (NASDAQ:PTRY), BP Connect (NYSE:BP), On the Run (NYSE:XOM), Speedway America (NYSE:MPC), Kwik Shop (NYSE:KR), and Qwiktrip.
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. 30, 2014, 10:44 AM
- Carl Icahn reduced his stake in Family Dollar (FDO +1.5%) to 6.03% from 9.39%, according to a SEC filing.
- The investor may have concluded that Dollar Tree's offer for FDO won't be topped.
- The sale leaves Family Dollar CEO Howard Levine as the largest shareholder with his holding of 8.17% of the company.
- SEC Form 13D
FDO vs. ETF Alternatives
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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