Sep. 10, 2014, 10:50 AM
- Though management at Family Dollar (FDO -0.2%) is nervous about the regulatory risk of merging with Dollar General (DG), institutional and retail investors are likely to focus more on the higher per-share offer offered by Dollar General than Dollar Tree (DLTR -0.1%), say analysts.
- Ready for action: Dollar General says it has buyout funding commitments from Goldman Sachs and Citigroup in its back pocket. The company's tender offer expires on October 8.
- Still in the mix: Dollar Tree could still match the Dollar General offer, although Edward Jones notes the company lacks the firepower of its discounter rival and is a good bet to stand pat.
- Previous: Wal-Mart the wildcard in battle for Family Dollar.
Sep. 10, 2014, 6:29 AM
- Dollar General (NYSE:DG) initiates a tender offer to acquire all the shares of Family Dollar (NYSE:FDO) at $80 per share.
- The tender is set to expire on October 8 unless extended by the company.
- Dollar General reiterates its position that it's confident the merger will pass regulatory review.
- FDO +0.3% to $78.96 premarket.
Sep. 10, 2014, 1:51 AM
- Following the rejection of its second bid for rival Family Dollar (NYSE:FDO), Dollar General (NYSE:DG) is preparing to go hostile, taking its $9.1B offer directly to shareholders.
- Family Dollar rejected Dollar General's bids citing antitrust risks, and wants DG to assume the entire risk of the deal, such as carrying out any divestiture that antitrust regulators ask for.
- While Dollar General believes it has already offered far more divestitures than is necessary, it has not gone as far as Dollar Tree (NASDAQ:DLTR) which has included a commitment to divest as many stores as necessary to clear antitrust hurdles.
Sep. 9, 2014, 9:56 AM
- Though Family Dollar Stores (FDO -0.1%) seems to have some nervous feet over potential regulatory issues if it were to be acquired by Dollar General (DG -0.4%), there's a case to be made that the deal could fly.
- Research from Kantar Research indicates that in some markets 90% of Family Dollar customers also shop at Wal-Mart (WMT -0.4%).
- The data point bolsters the argument that the Bentonville giant should be a consideration by regulators as they examine the competitive implication of a Dollar General-Family Dollar merger.
- Analysts also think Dollar General could flip the anti-competitive argument around to make the case that a DG-FDO combination would cut into Wal-Mart's dominance in many markets.
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. 3, 2014, 4:23 PM
Sep. 3, 2014, 2:58 PM
- Carl Icahn has unloaded his holdings in Family Dollar (FDO), according to a report from Reuters.
- Sources indicate the activist investor exited his position in the discounter with a profit of close to $200M.
- What to watch: The sale by Icahn leaves a little bit more breathing room in the boardroom at Family Dollar as it considers competing bids from Dollar Tree and Dollar General.
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.
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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