Aug. 21, 2014, 1:58 PM
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
Jul. 29, 2014, 10:38 AM
- Retail analysts think there is no other "logical" candidate that will come in to top Dollar Tree's (DLTR -0.2%) $74.50-per-share offer for Family Dollar (FDO +0.7%) after Dollar General and Wal-Mart have been scratched off the list.
- Shares of Family Dollar still trade at a premium over the DLTR offer.
- What to watch: Analysts note that the $300M in annual costs synergies forecast by 2018 from the merger is tied to supplier and distribution savings. Strategic store closings could take the tally higher.
Jul. 28, 2014, 1:47 PM
- Carl Icahn is hopeful a higher offer for Family Dollar (FDO +24.6%) comes down the road, according to a blog post on Shareholderssquaretable.com.
- If a bidder comes in to offer more than Dollar Tree for Family Dollar, it won't be Dollar General (DG +0.1%), according to Bloomberg. Dollar General reportedly passed on making an over-the-top offer.
- Family Dollar currently trades at $75.47, above the $74.50 DLTR offer price.
Jul. 28, 2014, 12:45 PM
Jul. 28, 2014, 9:12 AM
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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